Lincoln Electric Holdings Inc (LECO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,327,430 | 1,339,190 | 1,312,910 | 1,307,830 | 1,308,850 | 1,225,580 | 1,201,420 | 1,125,290 | 1,034,040 | 924,319 | 913,061 | 863,118 | 863,909 | 857,993 | 859,623 | 803,515 | 790,250 | 710,744 | 660,111 | 667,103 |
| ROE | 35.11% | 36.03% | 38.93% | 41.80% | 41.66% | 40.61% | 39.76% | 41.60% | 45.67% | 47.33% | 39.43% | 38.04% | 32.00% | 31.13% | 34.18% | 27.97% | 26.08% | 28.81% | 33.14% | 41.55% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $466,108K ÷ $1,327,430K
= 35.11%
ROE, or Return on Equity, is a key financial ratio that measures a company's profitability by evaluating how effectively it is utilizing shareholders' equity to generate profits. The ROE for Lincoln Electric Holdings Inc has shown fluctuations over the past few years, ranging from a high of 47.33% on September 30, 2022, to a low of 26.08% on December 31, 2020.
Overall, Lincoln Electric's ROE has generally been solid, consistently exceeding 25% during the period under review, indicating that the company has been efficient in generating profits relative to the shareholders' equity invested in the company. The upward trend observed in recent quarters, with ROE peaking at 47.33% on September 30, 2022, before stabilizing around the mid-30% range in subsequent periods, signifies an improving profitability and efficiency in the utilization of equity.
The variations in ROE could be influenced by factors such as changes in the company's net income, total assets, or equity levels, as well as changes in financial leverage. Investors and analysts typically view a higher ROE positively, indicating a higher return on investment for shareholders. However, it is important to consider the industry norms and compare Lincoln Electric's ROE with its peers to gain a better understanding of its performance relative to the industry.
Peer comparison
Dec 31, 2024