Lincoln Electric Holdings Inc (LECO)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 738,000 | 674,084 | 646,063 | 627,118 | 623,934 | 556,362 | 454,751 | 411,870 | 348,665 | 357,851 | 392,510 | 308,731 | 287,971 | 284,041 | 293,464 | 358,682 | 370,910 | 383,138 | 395,381 | 384,829 |
| Interest expense (ttm) | US$ in thousands | 51,134 | 48,489 | 44,414 | 38,588 | 31,107 | 27,707 | 25,168 | 24,542 | 23,781 | 23,413 | 23,211 | 23,455 | 23,960 | 24,742 | 25,788 | 25,973 | 25,942 | 25,676 | 24,747 | 24,877 |
| Interest coverage | 14.43 | 13.90 | 14.55 | 16.25 | 20.06 | 20.08 | 18.07 | 16.78 | 14.66 | 15.28 | 16.91 | 13.16 | 12.02 | 11.48 | 11.38 | 13.81 | 14.30 | 14.92 | 15.98 | 15.47 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $738,000K ÷ $51,134K
= 14.43
The interest coverage ratio for Lincoln Electric Holdings, Inc. has shown a decreasing trend over the quarters. The company's ability to cover its interest expenses decreased from a high of 23.93 in Q2 2022 to a low of 15.09 in Q3 2023. This indicates that the company's earnings before interest and taxes have become less sufficient to cover its interest obligations over time. Although the ratio remains relatively healthy, the declining trend should be closely monitored to ensure the company can meet its debt payment obligations comfortably in the future.
Peer comparison
Dec 31, 2023