Lincoln Electric Holdings Inc (LECO)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,102,770 | 1,102,860 | 1,103,900 | 1,110,630 | 1,110,400 | 711,250 | 712,908 | 715,032 | 717,089 | 717,787 | 718,137 | 715,328 | 715,456 | 785,579 | 777,171 | 710,599 | 712,302 | 732,531 | 704,319 | 688,190 |
| Total assets | US$ in thousands | 3,377,300 | 3,325,900 | 3,311,190 | 3,253,200 | 3,180,550 | 2,651,960 | 2,741,810 | 2,736,340 | 2,592,310 | 2,568,800 | 2,512,730 | 2,361,750 | 2,314,450 | 2,217,500 | 2,199,040 | 2,305,900 | 2,371,210 | 2,361,160 | 2,394,330 | 2,354,850 |
| Debt-to-assets ratio | 0.33 | 0.33 | 0.33 | 0.34 | 0.35 | 0.27 | 0.26 | 0.26 | 0.28 | 0.28 | 0.29 | 0.30 | 0.31 | 0.35 | 0.35 | 0.31 | 0.30 | 0.31 | 0.29 | 0.29 |
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 been relatively stable over the past eight quarters, ranging from 0.29 to 0.38. The ratio indicates the proportion of the company's assets financed by debt. A decreasing trend in the ratio suggests a lower dependency on debt financing for asset acquisition, while an increasing trend may indicate higher leverage.
In this case, the debt-to-assets ratio was at its lowest in Q3 2022 at 0.29 and reached its highest in Q4 2022 at 0.38. Subsequently, there was some fluctuation within the 0.31 to 0.34 range in the following quarters.
With a current ratio of around 0.33 in the most recent quarters, Lincoln Electric Holdings, Inc. appears to have a moderate level of leverage in its capital structure, with a significant portion of its assets being funded by debt. For a deeper analysis of the company's financial health and risk profile, it would be beneficial to consider other financial ratios and factors in conjunction with the debt-to-assets ratio.
Peer comparison
Dec 31, 2023