Lincoln Electric Holdings Inc (LECO)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,308,850 | 1,225,580 | 1,201,420 | 1,125,240 | 1,034,040 | 924,228 | 912,983 | 863,060 | 863,909 | 857,993 | 859,665 | 803,515 | 789,271 | 709,825 | 659,254 | 667,103 | 818,172 | 812,924 | 845,428 | 863,992 |
| Debt-to-equity ratio | 0.84 | 0.90 | 0.92 | 0.99 | 1.07 | 0.77 | 0.78 | 0.83 | 0.83 | 0.84 | 0.84 | 0.89 | 0.91 | 1.11 | 1.18 | 1.07 | 0.87 | 0.90 | 0.83 | 0.80 |
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 shown fluctuations over the past eight quarters. Generally, the company's debt-to-equity ratio has been relatively high, ranging from 0.84 to 1.16. In Q1 2023, the ratio reached a peak of 1.03 but decreased slightly in Q2 and Q3 of the same year. This indicates that the company has incurred a significant amount of debt in relation to its equity, which could potentially signal a higher financial risk.
It is crucial to closely monitor how Lincoln Electric Holdings manages its debt levels relative to its equity in order to ensure financial stability and sustainability in the long term. Additionally, investors and stakeholders may want to evaluate the company's ability to meet its debt obligations and assess the potential impact of the debt on its overall financial health.
Peer comparison
Dec 31, 2023