Lincoln Electric Holdings Inc (LECO)
Debt-to-equity 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-equity ratio | 0.84 | 1.07 | 0.83 | 0.91 | 0.87 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,102,770K ÷ $1,308,850K
= 0.84
The debt-to-equity ratio of Lincoln Electric Holdings, Inc. has exhibited fluctuations over the past five years. The ratio declined from 1.16 in 2022 to 0.84 in 2023, indicating a decrease in the company's reliance on debt relative to equity in financing its operations. This reduction suggests that the company may have paid off some of its debt or raised additional equity during the year.
Comparing the current ratio to the ratios in 2021, 2020, and 2019, we observe that it remains below the levels seen in those prior years. This trend indicates that Lincoln Electric Holdings, Inc. has become less leveraged over time, as the proportion of debt to equity has decreased.
Overall, the downward trend in the debt-to-equity ratio suggests an improvement in the company's financial risk profile and a stronger capital structure, indicating a potential increase in financial stability and a lower risk of default.
Peer comparison
Dec 31, 2023