Lincoln Electric Holdings Inc (LECO)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 717,849 | 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 | 370,910 | 383,138 | 395,381 | 384,829 |
| Total assets | US$ in thousands | 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 | 2,371,210 | 2,361,160 | 2,394,330 | 2,354,850 |
| Operating ROA | 21.26% | 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% | 15.64% | 16.23% | 16.51% | 16.34% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $717,849K ÷ $3,377,300K
= 21.26%
The operating return on assets (ROA) for Lincoln Electric Holdings, Inc. has exhibited some fluctuations during the recent quarters. The trend shows a gradual decrease from 22.71% in Q3 2022 to 19.25% in Q1 2023, followed by a slight increase to 20.92% in Q4 2023. While the company's operating ROA has remained in the range of 19-22% over the past two years, there seems to be some variability in performance.
It is important to note that a higher operating ROA indicates that the company is generating more operating income from its assets. In the context of Lincoln Electric Holdings, Inc., the operating ROA has generally been at a healthy level, reflecting efficient asset utilization to generate operating profits. However, the recent fluctuations suggest that the company's profitability and asset management efficiency may have experienced some changes, which would require further investigation to understand the underlying reasons behind these variations.
Peer comparison
Dec 31, 2023