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Lincoln Electric Holdings LECO Return on invested capital

Return on invested capital at other companies

ESAB logo
ESABESAB
10.2%-2.8pp
Advanced Energy Industries logo
Advanced Energy IndustriesAEIS
14.8%+9.1pp
Dover logo
DoverDOV
15.9%+0.7pp
Wesco International logo
Wesco InternationalWCC
9.1%+0.1pp
Applied Industrial Technologies logo
Applied Industrial TechnologiesAIT
19.8%0.0pp
United Rentals logo
United RentalsURI
12.1%-0.9pp

Other financials

Income statement

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Revenue$1.1B+11.7%
Gross profit$399.1M+9.2%
Operating income$186.2M+12.9%
Net income$136.4M+15.1%
EPS (diluted)$2.47+17.6%

Balance sheet

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Cash & equivalents$298.9M-24.3%
Total debt$1.4B+4.0%
Total equity$1.2B+32.6%
Total assets$3.9B+7.6%

Cash flow

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Operating cash flow$102.2M-45.0%
CapEx$39.2M+45.3%
Free cash flow$63.0M-60.3%

Valuation

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Market cap$15.08B+28.8%
Enterprise value$16.14B+27.8%
P/E28×+2.6×
P/S3.5×+0.6×

Profitability

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Gross margin36%-0.4pp
Operating margin17%+1.2pp
Net margin12.4%+0.9pp
FCF margin10.1%-3.2pp

Returns & leverage

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Return on equity46.3%-2.8pp
Debt / equity+0.1×
Current ratio1.8×0.0×

Where this comes from

Calculated from Lincoln Electric Holdings’s reported figures.

Based on trailing twelve months.

The official record: Lincoln Electric Holdings’s 10-Q, filed October 27, 2023, on SEC EDGAR. View the filing →

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Questions, answered.

What is Lincoln Electric Holdings's return on invested capital?
Lincoln Electric Holdings (LECO) reported return on invested capital of 28.5% in Q3 2023.
How has Lincoln Electric Holdings's return on invested capital changed year-over-year?
Lincoln Electric Holdings's return on invested capital decreased by 8.6% year-over-year, from 31.2% to 28.5%.
What is the long-term trend for Lincoln Electric Holdings's return on invested capital?
Over 2 years (2020 to 2022), Lincoln Electric Holdings's return on invested capital has grown at a 29.8% compound annual growth rate (CAGR), from 16.2% to 27.4%.
What does return on invested capital mean?
Net operating profit after tax (operating income taxed at the effective rate) divided by average invested capital (debt plus equity minus cash). Measures the after-tax return on all capital put to work in the business, independent of capital structure.