Lincoln Electric Holdings (FRA:LNE) ROCE % : 25.52% (As of Mar. 2024)

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What is Lincoln Electric Holdings ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lincoln Electric Holdings's annualized ROCE % for the quarter that ended in Mar. 2024 was 25.52%.

Lincoln Electric Holdings ROCE % Historical Data

The historical data trend for Lincoln Electric Holdings's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Lincoln Electric Holdings ROCE % Chart

Lincoln Electric Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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21.91

15.28

19.98

30.74

29.14

Lincoln Electric Holdings Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															28.27	29.88	27.66	31.67	25.52

Lincoln Electric Holdings ROCE % Calculation

Lincoln Electric Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	670.544	/	( ( (3002.435 - 805.135)	+	(3096.981 - 691.977) )	/ 2 )
	=	670.544	/	( (2197.3	+	2405.004)	/ 2 )
	=	670.544	/	2301.152
	=	29.14 %

Lincoln Electric Holdings's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	615.696	/	( ( (3096.981 - 691.977)	+	(3109.34 - 688.963) )	/ 2 )
	=	615.696	/	( ( 2405.004	+	2420.377 )	/ 2 )
	=	615.696	/	2412.6905
	=	25.52 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Lincoln Electric Holdings (FRA:LNE) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Lincoln Electric Holdings ROCE % Related Terms

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Lincoln Electric Holdings (FRA:LNE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Lincoln Electric Holdings Inc (FRA:LNE) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LECO:USA LNE:Germany

Address

22801 Street Clair Avenue, Cleveland, OH, USA, 44117

Website

https://www.lincolnelectric.com

Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. The firm's portfolio of products includes arc-welding solutions, plasma and oxy-fuel cutting systems, and brazing and soldering alloys, as well as automation solutions. Lincoln Electric serves clients in the general fabrication, heavy industries, automotive, construction, shipbuilding, energy and process industries, among other end markets. Based in Cleveland, Ohio, Lincoln Electric has operations in 19 countries and has 11,000 employees worldwide. The company generated roughly $3.8 billion in sales in 2022.

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