Lincoln Electric Holdings Inc (LECO)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 679,132 | 672,532 | 715,648 | 712,016 | 709,294 | 672,148 | 638,902 | 629,317 | 622,079 | 605,747 | 573,757 | 522,727 | 472,766 | 429,770 | 385,020 | 327,100 | 327,487 | 331,569 | 344,762 | 394,126 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 51.16% | 50.22% | 54.51% | 54.44% | 54.19% | 54.84% | 53.18% | 55.92% | 60.16% | 65.53% | 62.84% | 60.56% | 54.72% | 50.09% | 44.79% | 40.71% | 41.44% | 46.65% | 52.23% | 59.08% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $679,132K ÷ ($—K + $1,327,430K)
= 51.16%
Based on the provided data, Lincoln Electric Holdings Inc's return on total capital has shown some fluctuations over the periods highlighted. The return on total capital stood at 59.08% as of March 31, 2020, which decreased to 52.23% by June 30, 2020. Subsequently, there was a further decline to 46.65% by September 30, 2020, and to 41.44% by December 31, 2020.
However, the return on total capital started to recover in the following periods. By March 31, 2021, it improved to 40.71% and continued to rise to 44.79% by June 30, 2021, and further increased to 50.09% by September 30, 2021. The return continued to rise, reaching 54.72% by December 31, 2021, and peaked at 65.53% by September 30, 2022.
Despite some fluctuations thereafter, the return on total capital generally remained above 50% until December 31, 2024, when it stood at 51.16%. The upward trend seen in the return on total capital from 2020 to 2022 indicates that Lincoln Electric Holdings Inc was efficiently utilizing its total capital to generate profits during this period. However, the slight declines in the later periods suggest potential changes in the company's capital structure or investment strategies that may have impacted its overall return on total capital.
Peer comparison
Dec 31, 2024