Lincoln Electric Holdings Inc (LECO)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 672,023 | 677,105 | 702,986 | 698,985 | 695,917 | 655,306 | 625,974 | 615,494 | 612,336 | 591,197 | 564,658 | 518,947 | 461,669 | 424,760 | 386,983 | 304,925 | 282,071 | 281,333 | 292,084 | 357,506 |
| Total assets | US$ in thousands | 3,520,140 | 3,664,540 | 3,415,250 | 3,379,720 | 3,377,300 | 3,325,900 | 3,311,190 | 3,253,200 | 3,180,550 | 2,651,960 | 2,741,810 | 2,736,340 | 2,592,310 | 2,568,800 | 2,512,730 | 2,361,750 | 2,314,450 | 2,217,500 | 2,199,040 | 2,305,900 |
| Operating ROA | 19.09% | 18.48% | 20.58% | 20.68% | 20.61% | 19.70% | 18.90% | 18.92% | 19.25% | 22.29% | 20.59% | 18.97% | 17.81% | 16.54% | 15.40% | 12.91% | 12.19% | 12.69% | 13.28% | 15.50% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $672,023K ÷ $3,520,140K
= 19.09%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures the efficiency of Lincoln Electric Holdings Inc in generating profits from its assets specifically related to operations. The trend analysis of Lincoln Electric's Operating ROA from March 31, 2020, to December 31, 2024, reveals fluctuations in the company's operational efficiency.
The Operating ROA increased steadily from March 31, 2020, to September 30, 2021, indicating a positive trend in utilizing assets to generate operating profits. There was a peak in Operating ROA at 22.29% on September 30, 2022, which shows the company's effectiveness in generating operating income relative to its assets.
However, the Operating ROA experienced a slight dip in the subsequent periods, particularly by the end of 2023 and throughout 2024, suggesting potential challenges or changes in operating performance. The ratio decreased to 18.48% on September 30, 2024, before showing a modest recovery to 19.09% by December 31, 2024.
Overall, Lincoln Electric Holdings Inc demonstrated a generally positive trend in operating efficiency as reflected by the Operating ROA during the analyzed period. It is essential for the company to closely monitor and manage its asset utilization to sustain and potentially improve its operational profitability in the future.
Peer comparison
Dec 31, 2024