Lincoln Electric Holdings Inc (LECO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,327,430 | 1,308,850 | 1,034,040 | 863,909 | 790,250 |
| ROE | 35.11% | 41.66% | 45.67% | 32.01% | 26.08% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $466,108K ÷ $1,327,430K
= 35.11%
Based on the provided data, Lincoln Electric Holdings Inc's return on equity (ROE) has shown a consistent upward trend over the years, indicating improving efficiency in generating profits from shareholders' equity.
The ROE has increased from 26.08% as of December 31, 2020, to 32.01% by December 31, 2021, demonstrating a positive growth trajectory. The substantial increase to 45.67% by December 31, 2022, further accentuates the company's ability to generate higher returns on equity.
Even though there was a slight decrease to 41.66% by December 31, 2023, it is worth noting that the ROE remained at a relatively high level, indicating sustained profitability and efficient utilization of equity.
The latest ROE figure of 35.11% as of December 31, 2024, while lower than the peak in 2022, still reflects a strong performance in generating returns for shareholders.
Overall, the consistent improvement in Lincoln Electric Holdings Inc's ROE suggests effective management of assets and operations to maximize profitability relative to shareholders' equity, which may be viewed positively by investors and stakeholders.
Peer comparison
Dec 31, 2024