Lincoln Electric Holdings Inc (LECO)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 466,108 | 482,522 | 511,109 | 546,732 | 545,248 | 497,751 | 477,633 | 468,125 | 472,224 | 437,505 | 360,037 | 328,319 | 276,466 | 267,117 | 293,839 | 224,730 | 206,115 | 204,753 | 218,735 | 277,191 |
| Total assets | US$ in thousands | 3,520,140 | 3,664,540 | 3,415,250 | 3,379,720 | 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 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ 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 fluctuations over the past few years. ROA provides insight into how efficiently a company is utilizing its assets to generate profit.
The ROA ranged from a low of 8.91% in December 2020 to a high of 16.50% in September 2022, indicating variability in the company's asset utilization efficiency. Overall, Lincoln Electric's ROA has generally been above 10%, reflecting a relatively strong performance in generating earnings from its assets.
The upward trend in ROA from March 2022 to December 2024 suggests improved asset efficiency over this period. However, the slight decline in ROA from its peak in September 2024 to December 2024 may warrant further analysis to understand the factors influencing the company's asset profitability.
In conclusion, Lincoln Electric Holdings Inc's ROA indicates a generally efficient use of assets to generate earnings, with periodic fluctuations that may require ongoing monitoring and evaluation to ensure sustained performance.
Peer comparison
Dec 31, 2024