Lincoln Electric Holdings Inc (LECO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 636,935 | 737,999 | 622,078 | 594,084 | 329,854 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,327,430 | 1,308,850 | 1,034,040 | 863,909 | 790,250 |
| Return on total capital | 47.98% | 56.39% | 60.16% | 68.77% | 41.74% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $636,935K ÷ ($—K + $1,327,430K)
= 47.98%
Based on the data provided for Lincoln Electric Holdings Inc, the return on total capital has shown a positive trend over the years, starting at 41.74% on December 31, 2020, increasing to 68.77% on December 31, 2021, and maintaining a strong performance at 60.16% on December 31, 2022. Subsequently, although a slight decline was observed, the return on total capital remained robust at 56.39% on December 31, 2023, and 47.98% on December 31, 2024. This performance indicates that the company has been effective in generating returns from its total invested capital, demonstrating efficiency in utilizing its resources to generate profits. However, the slight decrease in the most recent year may warrant further investigation to ensure sustainable performance in the future.
Peer comparison
Dec 31, 2024