Lincoln Electric Holdings Inc (LECO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Lincoln Electric Holdings Inc has consistently maintained a strong solvency position over the analyzed period, with its debt-to-assets, debt-to-capital, and debt-to-equity ratios all indicating a debt-free status, registering at 0.00 throughout the years. The financial leverage ratio, on the other hand, showed some fluctuations but remained at relatively low levels, ranging from 2.58 to 3.46. This suggests that the company has been able to finance its operations predominantly through equity rather than debt, resulting in a stable and healthy financial structure with minimal financial risk. The decreasing trend in the financial leverage ratio indicates a reduction in the company's reliance on debt financing, which may enhance its overall financial stability and flexibility in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 15.87 | 16.78 | 18.39 | 17.82 | 15.99 | 15.16 | 15.31 | 17.24 | 21.09 | 22.99 | 24.06 | 22.68 | 21.28 | 19.70 | 17.78 | 14.95 | 14.90 | 14.62 | 14.65 | 16.74 |
The interest coverage ratio for Lincoln Electric Holdings Inc has been relatively stable over the period from March 31, 2020, to December 31, 2024. The ratio has fluctuated within a range of 14.62 to 24.06, indicating the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
A higher interest coverage ratio signifies that the company is more capable of meeting its interest obligations out of its operating income. The trend shows an improvement in the company's ability to cover its interest payments efficiently, as the ratio generally increased from 16.74 on March 31, 2020, to 15.87 on December 31, 2024, with a few fluctuations along the way.
Overall, the interest coverage ratio for Lincoln Electric Holdings Inc reflects a healthy financial position, indicating that the company has been effectively managing its interest expenses in relation to its operating profits during the period under review.