Lincoln Electric Holdings Inc (LECO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,308,850 | 1,034,040 | 863,909 | 789,271 | 818,172 |
| ROE | 41.66% | 45.67% | 32.00% | 26.11% | 35.82% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $545,248K ÷ $1,308,850K
= 41.66%
The return on equity (ROE) of Lincoln Electric Holdings, Inc. has shown a fluctuating trend over the past five years, ranging from 26.11% in 2020 to 45.66% in 2022. In 2023, the ROE decreased to 41.66%.
Overall, the company has maintained relatively high ROE figures, indicating efficient utilization of shareholder equity to generate profits. The increasing trend from 2019 to 2022 is a positive sign of improved profitability and efficiency. However, the slight decrease in ROE in 2023 suggests a potential dip in the company's profitability or efficiency in that particular year.
Further analysis, considering the company's financial performance and capital structure changes, is necessary to fully understand the factors influencing Lincoln Electric Holdings, Inc.'s return on equity.
Peer comparison
Dec 31, 2023