Lincoln Electric Holdings Inc (LECO)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 466,108 | 545,248 | 472,224 | 276,580 | 206,115 |
| Total assets | US$ in thousands | 3,520,140 | 3,377,300 | 3,180,550 | 2,592,310 | 2,314,450 |
| ROA | 13.24% | 16.14% | 14.85% | 10.67% | 8.91% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $466,108K ÷ $3,520,140K
= 13.24%
Based on the provided data, Lincoln Electric Holdings Inc's return on assets (ROA) has shown a positive trend over the years, increasing from 8.91% on December 31, 2020, to 10.67% on December 31, 2021, further rising to 14.85% on December 31, 2022, and reaching its peak at 16.14% on December 31, 2023. However, there was a slight decrease in the ROA to 13.24% on December 31, 2024.
Overall, the company has been efficient in generating profits relative to its total assets, with ROA consistently above 10% in the recent years, indicating effective asset utilization and management. The significant increase in ROA between 2020 and 2023 suggests improved profitability and operational efficiency. The slight drop in ROA in the most recent period could be a point for further evaluation to understand the factors influencing this change.
Peer comparison
Dec 31, 2024