Lincoln Electric Holdings Inc (LECO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 36.72% | 36.45% | 36.34% | 35.76% | 34.96% | 34.51% | 33.95% | 33.71% | 34.05% | 33.89% | 33.96% | 33.64% | 33.04% | 33.25% | 33.01% | 32.75% | 32.81% | 32.73% | 32.83% | 33.48% |
| Operating profit margin | 16.77% | 16.74% | 17.17% | 16.91% | 16.60% | 16.12% | 15.78% | 15.88% | 16.28% | 16.09% | 15.92% | 15.25% | 14.27% | 13.77% | 13.14% | 11.25% | 10.62% | 10.43% | 10.58% | 12.13% |
| Pretax margin | 14.83% | 15.43% | 15.97% | 16.70% | 16.39% | 15.39% | 15.17% | 15.19% | 15.76% | 14.39% | 12.11% | 11.39% | 10.05% | 10.85% | 12.54% | 10.52% | 9.94% | 9.76% | 10.21% | 11.93% |
| Net profit margin | 11.63% | 11.93% | 12.49% | 13.23% | 13.01% | 12.25% | 12.04% | 12.08% | 12.56% | 11.91% | 10.15% | 9.65% | 8.55% | 8.66% | 9.97% | 8.29% | 7.76% | 7.59% | 7.93% | 9.41% |
Lincoln Electric Holdings Inc has shown a consistent improvement in its profitability ratios over the analyzed period:
1. Gross Profit Margin: The company's gross profit margin steadily increased from 33.48% on March 31, 2020, to 36.72% on December 31, 2024. This indicates the company's ability to efficiently control production costs and generate more profit from its sales.
2. Operating Profit Margin: Lincoln Electric's operating profit margin also exhibited a positive trend, rising from 12.13% on March 31, 2020, to 16.77% on December 31, 2024. This signifies the company's effective management of operating expenses and improved operational efficiency.
3. Pretax Margin: The pretax margin of the company fluctuated over the period but generally trended upwards, reaching 16.70% on March 31, 2024. This suggests that Lincoln Electric was successful in increasing its profitability before accounting for taxes.
4. Net Profit Margin: The net profit margin followed a similar positive trajectory, climbing from 9.41% on March 31, 2020, to 11.63% on December 31, 2024. This indicates that the company was able to enhance its bottom line by controlling expenses and increasing profitability.
Overall, Lincoln Electric Holdings Inc demonstrated an improvement in its profitability ratios over the period, showcasing its ability to efficiently manage costs and generate increasing profits from its operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.24% | 13.17% | 14.97% | 16.18% | 16.14% | 14.97% | 14.42% | 14.39% | 14.85% | 16.50% | 13.13% | 12.00% | 10.66% | 10.40% | 11.69% | 9.52% | 8.91% | 9.23% | 9.95% | 12.02% |
| Return on total capital | 51.16% | 50.22% | 54.51% | 54.44% | 54.19% | 54.84% | 53.18% | 55.92% | 60.16% | 65.53% | 62.84% | 60.56% | 54.72% | 50.09% | 44.79% | 40.71% | 41.44% | 46.65% | 52.23% | 59.08% |
| Return on equity (ROE) | 35.11% | 36.03% | 38.93% | 41.80% | 41.66% | 40.61% | 39.76% | 41.60% | 45.67% | 47.33% | 39.43% | 38.04% | 32.00% | 31.13% | 34.18% | 27.97% | 26.08% | 28.81% | 33.14% | 41.55% |
Based on the provided data, Lincoln Electric Holdings Inc has shown a positive trend in its profitability ratios over the years.
- Operating Return on Assets (Operating ROA): This ratio has improved consistently from 15.50% in March 2020 to 19.09% in December 2024, indicating the company's ability to generate profits from its operations relative to its total assets.
- Return on Assets (ROA): The ROA ratio has also shown a positive trend, increasing from 12.02% in March 2020 to 13.24% in December 2024. This indicates the company's efficiency in generating profits from its total assets.
- Return on Total Capital: The return on total capital has fluctuated but generally remained at healthy levels, ranging from 41.44% in December 2020 to 65.53% in September 2022. This ratio reflects the company's ability to generate returns for both equity and debt holders.
- Return on Equity (ROE): The ROE has shown a consistent upward trend, improving from 41.55% in March 2020 to 35.11% in December 2024. This indicates the company's efficiency in generating profits for its shareholders relative to their equity investments.
Overall, Lincoln Electric Holdings Inc's profitability ratios demonstrate a positive financial performance, with improvements in operating efficiency, asset utilization, capital returns, and shareholder value over the years.