Lincoln Electric Holdings Inc (LECO)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 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 | 3.34 | 3.46 | 2.90 | 2.90 | 2.83 | 2.73 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,377,300K ÷ $1,308,850K
= 2.58
The financial leverage ratio of Lincoln Electric Holdings, Inc. has exhibited fluctuations over the past eight quarters. The ratio has ranged from a low of 2.58 in Q4 2023 to a high of 3.17 in Q1 2022. Generally, a lower financial leverage ratio indicates a lower level of financial risk and a higher degree of financial stability, as the company relies less on debt to finance its operations. On the other hand, a higher financial leverage ratio suggests higher financial risk and a greater reliance on debt financing.
The downward trend in the financial leverage ratio from Q1 2022 to Q4 2023 may indicate that the company has been reducing its reliance on debt financing over this period. This could be a positive sign for investors and creditors, as it signifies improved financial strength and risk management by the company. However, it is important to monitor future trends in the financial leverage ratio to assess the company's overall financial health and strategic decisions regarding capital structure.
Peer comparison
Dec 31, 2023