Lincoln Electric Holdings Inc (LECO)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.98% | 34.72% | 34.05% | 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% | 33.55% | 33.78% | 34.14% | 34.00% |
| Operating profit margin | 17.14% | 16.22% | 15.83% | 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% | 12.35% | 12.73% | 13.10% | 12.70% |
| Pretax margin | 16.40% | 15.49% | 15.22% | 15.19% | 15.76% | 14.39% | 12.12% | 11.38% | 10.05% | 10.85% | 12.53% | 10.53% | 9.94% | 9.75% | 10.21% | 11.93% | 12.27% | 12.71% | 12.82% | 12.46% |
| Net profit margin | 13.02% | 12.32% | 12.08% | 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% | 9.76% | 10.50% | 10.42% | 9.83% |
Lincoln Electric Holdings, Inc. has demonstrated stable and consistent profitability ratios over the quarters analyzed. The gross profit margin has ranged between 33.71% and 34.96%, indicating efficient cost management and pricing strategies maintained by the company.
The operating profit margin has remained strong, ranging from 15.47% to 16.86%, highlighting Lincoln Electric's ability to generate profits from its core business operations after accounting for operating expenses.
The pretax margin has also shown an upward trend, indicating effective management of non-operating expenses and taxes, with fluctuations between 11.39% and 16.39% over the periods analyzed.
Furthermore, the net profit margin has consistently improved, ranging from 9.65% to 13.01%, reflecting Lincoln Electric's ability to generate net income relative to its total revenues. Overall, the profitability ratios suggest that Lincoln Electric has maintained a healthy financial performance throughout the quarters, indicating operational efficiency and effective cost control measures.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 12.36% | 13.39% | 13.13% | 12.64% |
| Return on total capital | 30.60% | 28.95% | 28.02% | 28.05% | 29.10% | 34.02% | 27.97% | 26.10% | 22.05% | 22.71% | 24.88% | 20.33% | 19.14% | 18.99% | 20.43% | 26.03% | 24.23% | 24.79% | 25.51% | 24.79% |
| Return on equity (ROE) | 41.66% | 40.61% | 39.76% | 41.60% | 45.67% | 47.34% | 39.44% | 38.04% | 32.00% | 31.13% | 34.18% | 27.97% | 26.11% | 28.85% | 33.18% | 41.55% | 35.82% | 38.90% | 37.18% | 34.46% |
Lincoln Electric Holdings, Inc. has demonstrated consistent profitability over the past eight quarters, as indicated by its profitability ratios.
- The Operating Return on Assets (Operating ROA) has remained relatively high, ranging from 19.24% to 22.71%, with Q3 2022 showing the peak performance at 22.71%. This indicates that the company is generating strong operating profits relative to its total assets.
- The Return on Assets (ROA) has also been healthy, fluctuating between 12.00% and 16.50%. Q3 2022 had the highest ROA at 16.50%, indicating a higher efficiency in generating profits from its assets.
- The Return on Total Capital has been consistently high, with values ranging from 27.41% to 35.30%. This metric shows how well the company is utilizing all of its available capital to generate profits.
- The Return on Equity (ROE) has been impressive, with values ranging from 38.04% to 47.33%. Q4 2022 had the highest ROE at 47.33%, showcasing the company's ability to generate significant returns for its equity shareholders.
Overall, Lincoln Electric Holdings, Inc. has exhibited strong profitability performance across these key ratios, indicating effective management of its assets, capital, and equity to generate profits for its stakeholders.