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

Company name
Symbol
ROE
Lincoln Electric Holdings Inc
LECO
41.66%
SPX Corp
SPXC
7.53%