Lincoln Electric Holdings Inc (LECO)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,520,140 | 3,664,540 | 3,415,250 | 3,379,720 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,327,430 | 1,339,190 | 1,312,910 | 1,307,830 | 1,308,850 | 1,225,580 | 1,201,420 | 1,125,290 | 1,034,040 | 924,319 | 913,061 | 863,118 | 863,909 | 857,993 | 859,623 | 803,515 | 790,250 | 710,744 | 660,111 | 667,103 |
| Financial leverage ratio | 2.65 | 2.74 | 2.60 | 2.58 | 2.58 | 2.71 | 2.76 | 2.89 | 3.08 | 2.87 | 3.00 | 3.17 | 3.00 | 2.99 | 2.92 | 2.94 | 2.93 | 3.12 | 3.33 | 3.46 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,520,140K ÷ $1,327,430K
= 2.65
The financial leverage ratio of Lincoln Electric Holdings Inc has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio declined from 3.46 on March 31, 2020, to a low of 2.58 on March 31, 2024, before slightly increasing to 2.65 by December 31, 2024. This downward trend suggests that the company has been reducing its reliance on debt financing in relation to equity, indicating improved financial stability and risk management. A lower financial leverage ratio generally signifies a stronger financial position and lower risk of default. It is noteworthy that the ratio remained relatively stable around the 3.00 mark in the latter part of the analysis period, indicative of a balanced capital structure maintained by the company. Overall, the downward trajectory of the financial leverage ratio for Lincoln Electric Holdings Inc reflects a prudent approach to managing financial risk and optimizing its capital structure over the analyzed period.
Peer comparison
Dec 31, 2024