Lincoln Electric Holdings Inc (LECO)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 545,248 | 472,224 | 276,466 | 206,115 | 293,109 |
| Total assets | US$ in thousands | 3,377,300 | 3,180,550 | 2,592,310 | 2,314,450 | 2,371,210 |
| ROA | 16.14% | 14.85% | 10.66% | 8.91% | 12.36% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $545,248K ÷ $3,377,300K
= 16.14%
The return on assets (ROA) of Lincoln Electric Holdings, Inc. has shown a positive trend over the past five years. The ROA increased from 12.36% in 2019 to 16.14% in 2023, indicating that the company has been more efficient in generating profits relative to its total assets.
This improvement suggests that Lincoln Electric Holdings, Inc. has been effectively managing its assets to generate higher returns. The consistent growth in ROA demonstrates the company's ability to optimize its asset utilization and profitability over the years.
Overall, the increasing trend in ROA reflects positively on Lincoln Electric Holdings, Inc.'s financial performance and suggests effective management of its assets to generate profits for its shareholders.
Peer comparison
Dec 31, 2023