Lincoln Electric Holdings Inc (LECO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,308,850 | 1,034,040 | 863,909 | 789,271 | 818,172 |
| Debt-to-capital ratio | 0.46 | 0.52 | 0.45 | 0.48 | 0.47 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,102,770K ÷ ($1,102,770K + $1,308,850K)
= 0.46
The debt-to-capital ratio of Lincoln Electric Holdings, Inc. has fluctuated over the past five years. In 2023, the ratio decreased to 0.46 from 0.54 in 2022. This indicates that the company's level of debt relative to its total capital has decreased, suggesting a lower reliance on debt financing compared to the prior year.
In comparison to 2021, where the ratio was 0.47, the debt-to-capital ratio in 2023 has slightly improved. However, it remains higher than the ratios in 2020 and 2019, both of which were 0.48. This indicates that although there has been a recent decline in debt utilization, the company's historical debt levels, relative to its total capital, have generally been consistent over the past five years.
Overall, the trend in Lincoln Electric Holdings, Inc.'s debt-to-capital ratio suggests a moderate level of leverage in the company's capital structure, with a recent decrease in dependency on debt financing. However, it is important to consider other financial metrics and external factors to gain a more comprehensive understanding of the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023