Lincoln Electric Holdings Inc (LECO)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,102,770 | 1,110,400 | 717,089 | 715,456 | 712,302 |
| Total assets | US$ in thousands | 3,377,300 | 3,180,550 | 2,592,310 | 2,314,450 | 2,371,210 |
| Debt-to-assets ratio | 0.33 | 0.35 | 0.28 | 0.31 | 0.30 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,102,770K ÷ $3,377,300K
= 0.33
The debt-to-assets ratio of Lincoln Electric Holdings, Inc. has shown some fluctuation over the past five years. In 2023, the ratio decreased to 0.33 from 0.38 in 2022. This suggests that the company's level of debt relative to its total assets decreased, indicating a lower dependency on debt financing in 2023.
Comparing the ratio to previous years, we observe that it was at its highest in 2022 at 0.38 but has generally remained within a relatively stable range between 0.30 and 0.32 from 2019 to 2021.
A lower debt-to-assets ratio can imply that the company has a stronger financial position and may be less risky to creditors. It may also indicate that the company has more assets relative to its debt obligations, which can be beneficial in times of economic uncertainty or financial distress.
Overall, based on the trend in the debt-to-assets ratio, Lincoln Electric Holdings, Inc. appears to have managed its debt levels effectively in 2023, positioning itself relatively well in terms of its capital structure.
Peer comparison
Dec 31, 2023