Lincoln Electric Holdings Inc (LECO)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 293,109 | 316,232 | 314,310 | 297,722 |
| Total stockholders’ equity | US$ in thousands | 1,308,850 | 1,225,580 | 1,201,420 | 1,125,240 | 1,034,040 | 924,228 | 912,983 | 863,060 | 863,909 | 857,993 | 859,665 | 803,515 | 789,271 | 709,825 | 659,254 | 667,103 | 818,172 | 812,924 | 845,428 | 863,992 |
| ROE | 41.66% | 40.61% | 39.76% | 41.60% | 45.67% | 47.34% | 39.44% | 38.04% | 32.00% | 31.13% | 34.18% | 27.97% | 26.11% | 28.85% | 33.18% | 41.55% | 35.82% | 38.90% | 37.18% | 34.46% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $545,248K ÷ $1,308,850K
= 41.66%
Based on the provided data, Lincoln Electric Holdings, Inc. has shown a stable trend in Return on Equity (ROE) over the past eight quarters. The ROE has ranged from a high of 47.33% in Q3 2022 to a low of 38.04% in Q1 2022.
The company's ROE has consistently remained above 35%, indicating a healthy level of profitability generated from shareholders' equity during the given period. The highest ROE of 47.33% in Q3 2022 suggests that Lincoln Electric was able to efficiently utilize its shareholders' equity to generate profits during that quarter.
However, there has been a slight decline in ROE in the most recent quarters from Q4 2022 to Q4 2023, with a decrease from 45.66% to 41.66%. This may indicate a moderation in the company's efficiency in generating profits relative to shareholders' equity in the latest quarter.
Overall, Lincoln Electric Holdings, Inc. has demonstrated a consistently strong ROE performance, although recent quarters have shown a slight decrease. Further analysis of the company's financial statements and operational performance may provide additional insight into the factors influencing this trend.
Peer comparison
Dec 31, 2023