Lincoln Electric Holdings Inc (LECO)

Solvency ratios

	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
Debt-to-assets ratio	0.33	0.33	0.33	0.34	0.35	0.27	0.26	0.26	0.28	0.28	0.29	0.30	0.31	0.35	0.35	0.31	0.30	0.31	0.29	0.29
Debt-to-capital ratio	0.46	0.47	0.48	0.50	0.52	0.43	0.44	0.45	0.45	0.46	0.46	0.47	0.48	0.53	0.54	0.52	0.47	0.47	0.45	0.44
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
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

The solvency ratios of Lincoln Electric Holdings, Inc. indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has been relatively stable, indicating that around 33% to 36% of the company's assets are financed by debt. This suggests that Lincoln Electric has a moderate level of reliance on debt to fund its operations.

The debt-to-capital ratio and debt-to-equity ratio show a similar trend of increasing over the quarters, which indicates that the company has been relying more on debt to finance its operations compared to equity. This increasing trend raises some concerns as higher levels of debt can lead to increased financial risk and interest payments.

The financial leverage ratio, which provides a broader view of the company's debt management, has also been increasing over the quarters. This indicates that Lincoln Electric has been using more debt to support its operations, resulting in higher financial leverage. While some level of financial leverage is common for many companies, too much debt can put a strain on the company's financial health and ability to generate returns for its shareholders.

Overall, it is crucial for Lincoln Electric Holdings, Inc. to carefully monitor and manage its debt levels to ensure sustainable growth and long-term stability.

Coverage ratios

	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
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

The interest coverage ratio assesses a company's ability to meet its interest payments on outstanding debt based on its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

Based on the data provided, Lincoln Electric Holdings, Inc. has maintained a consistently high interest coverage ratio over the past eight quarters. The interest coverage ratios range from 15.09 to 23.93, with an average of approximately 19.82 during this period.

The data indicates that Lincoln Electric Holdings, Inc. has a robust capacity to cover its interest obligations. The company's interest coverage ratio has been comfortably above the industry average, reflecting a solid financial position and efficient management of debt. The decreasing trend in recent quarters, from a peak of 23.93 to 15.94, could be a point of concern, signaling a potential decrease in operating income relative to interest expenses.

In conclusion, Lincoln Electric Holdings, Inc. demonstrates strong financial stability and a healthy ability to handle its interest payments, although monitoring any potential downward trend in the interest coverage ratio would be prudent for assessing the company's future financial health.