Lincoln Electric Holdings Inc (LECO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 636,462 | 717,849 | 612,336 | 357,039 | 282,071 |
| Total assets | US$ in thousands | 3,520,140 | 3,377,300 | 3,180,550 | 2,592,310 | 2,314,450 |
| Operating ROA | 18.08% | 21.26% | 19.25% | 13.77% | 12.19% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $636,462K ÷ $3,520,140K
= 18.08%
The operating return on assets (operating ROA) for Lincoln Electric Holdings Inc demonstrates a positive trend over the five-year period from 2020 to 2024. The operating ROA increased steadily from 12.19% in 2020 to 18.08% in 2024. Notably, there was significant improvement in 2022 and 2023, with the operating ROA reaching 19.25% and 21.26% respectively. This indicates that the company has been effectively utilizing its assets to generate operating income.
Overall, the increasing trend in operating ROA reflects Lincoln Electric Holdings Inc's ability to efficiently generate profits from its operational activities relative to its asset base. It suggests that the company has been managing its operations effectively and optimizing the utilization of its assets to drive profitability.
Peer comparison
Dec 31, 2024