Lincoln Net Income vs Gross Profit Analysis

LECO Stock

USD 199.15 3.26 1.61%

Lincoln Electric financial indicator trend analysis is infinitely more than just investigating Lincoln Electric Holdings recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Lincoln Electric Holdings is a good investment. Please check the relationship between Lincoln Electric Net Income and its Gross Profit accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

Net Income vs Gross Profit

Net Income vs Gross Profit Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Lincoln Electric Holdings Net Income account and Gross Profit. At this time, the significance of the direction appears to have strong relationship.

The correlation between Lincoln Electric's Net Income and Gross Profit is 0.67. Overlapping area represents the amount of variation of Net Income that can explain the historical movement of Gross Profit in the same time period over historical financial statements of Lincoln Electric Holdings, assuming nothing else is changed. The correlation between historical values of Lincoln Electric's Net Income and Gross Profit is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Net Income of Lincoln Electric Holdings are associated (or correlated) with its Gross Profit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Gross Profit has no effect on the direction of Net Income i.e., Lincoln Electric's Net Income and Gross Profit go up and down completely randomly.

Correlation Coefficient

0.67

Relationship Direction	Positive
Relationship Strength	Significant

View All Relationships

Net Income

Net income is one of the most important fundamental items in finance. It plays a large role in Lincoln Electric Holdings financial statement analysis. It represents the amount of money remaining after all of Lincoln Electric Holdings operating expenses, interest, taxes and preferred stock dividends have been deducted from a company total revenue.

Gross Profit

Gross profit is a required income statement account that reflects total revenue of Lincoln Electric Holdings minus its cost of goods sold. It is profit before Lincoln Electric operating expenses, interest payments and taxes. Gross profit is also known as gross margin. The profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Most indicators from Lincoln Electric's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Lincoln Electric Holdings current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

At this time, Lincoln Electric's Enterprise Value Over EBITDA is very stable compared to the past year. As of the 18th of December 2024, Enterprise Value Multiple is likely to grow to 16.86, while Selling General Administrative is likely to drop about 451.9 M.

	2021	2022	2023	2024 (projected)
Gross Profit	1.1B	1.3B	1.5B	746.9M
Total Revenue	3.2B	3.8B	4.2B	2.3B

Gross Profit Total Revenue

Lincoln Electric fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Property Plant And Equipment Gross	Total Current Assets	Short Term Debt	Intangible Assets	Common Stock Total Equity	Common Stock
Total Assets		0.56	0.6	0.94	0.52	0.94	0.41	0.75	0.95	0.49	0.77	0.28	0.45	0.97	0.03	0.62	0.9	-0.04	-0.69	0.7	0.61	0.96	0.23	0.92	0.83	0.83
Short Long Term Debt Total	0.56		0.63	0.58	-0.23	0.41	0.74	0.83	0.57	0.02	0.81	0.36	0.06	0.52	-0.61	0.99	0.56	-0.5	-0.93	0.96	0.76	0.46	0.01	0.47	0.21	0.2
Other Current Liab	0.6	0.63		0.63	0.15	0.67	0.68	0.72	0.6	0.07	0.77	0.35	0.02	0.61	-0.15	0.68	0.63	-0.23	-0.7	0.74	0.63	0.51	0.39	0.55	0.42	0.41
Total Current Liabilities	0.94	0.58	0.63		0.4	0.86	0.55	0.73	0.97	0.25	0.75	0.32	0.22	0.94	-0.09	0.61	0.97	-0.21	-0.71	0.72	0.7	0.89	0.44	0.86	0.68	0.68
Total Stockholder Equity	0.52	-0.23	0.15	0.4		0.65	-0.17	0.26	0.39	0.6	0.32	-0.27	0.5	0.56	0.76	-0.17	0.41	0.39	0.05	-0.02	0.19	0.62	0.22	0.49	0.71	0.71
Property Plant And Equipment Net	0.94	0.41	0.67	0.86	0.65		0.35	0.73	0.87	0.53	0.75	0.22	0.46	0.93	0.21	0.5	0.82	0.04	-0.61	0.6	0.53	0.91	0.21	0.85	0.87	0.87
Net Debt	0.41	0.74	0.68	0.55	-0.17	0.35		0.62	0.44	-0.43	0.7	0.05	-0.47	0.45	-0.63	0.7	0.63	-0.83	-0.69	0.74	0.8	0.25	0.36	0.36	-0.04	-0.05
Retained Earnings	0.75	0.83	0.72	0.73	0.26	0.73	0.62		0.71	0.31	0.97	0.3	0.27	0.7	-0.16	0.87	0.68	-0.28	-0.93	0.92	0.81	0.69	0.07	0.67	0.59	0.58
Accounts Payable	0.95	0.57	0.6	0.97	0.39	0.87	0.44	0.71		0.3	0.73	0.48	0.31	0.92	-0.08	0.62	0.91	-0.07	-0.7	0.71	0.61	0.89	0.27	0.9	0.7	0.7
Cash	0.49	0.02	0.07	0.25	0.6	0.53	-0.43	0.31	0.3		0.22	0.05	0.92	0.44	0.58	0.1	0.15	0.6	-0.15	0.12	-0.03	0.62	-0.18	0.37	0.81	0.81
Non Current Assets Total	0.77	0.81	0.77	0.75	0.32	0.75	0.7	0.97	0.73	0.22		0.24	0.18	0.75	-0.16	0.85	0.75	-0.34	-0.88	0.92	0.86	0.69	0.15	0.69	0.53	0.52
Non Currrent Assets Other	0.28	0.36	0.35	0.32	-0.27	0.22	0.05	0.3	0.48	0.05	0.24		0.15	0.17	-0.25	0.43	0.17	0.18	-0.46	0.39	0.09	0.2	-0.19	0.35	0.22	0.22
Cash And Short Term Investments	0.45	0.06	0.02	0.22	0.5	0.46	-0.47	0.27	0.31	0.92	0.18	0.15		0.4	0.49	0.14	0.1	0.66	-0.14	0.15	-0.07	0.61	-0.25	0.3	0.71	0.71
Net Receivables	0.97	0.52	0.61	0.94	0.56	0.93	0.45	0.7	0.92	0.44	0.75	0.17	0.4		0.04	0.57	0.93	-0.09	-0.61	0.67	0.66	0.96	0.34	0.84	0.75	0.75
Common Stock Shares Outstanding	0.03	-0.61	-0.15	-0.09	0.76	0.21	-0.63	-0.16	-0.08	0.58	-0.16	-0.25	0.49	0.04		-0.54	-0.11	0.73	0.44	-0.44	-0.31	0.19	0.14	0.05	0.48	0.48
Non Current Liabilities Total	0.62	0.99	0.68	0.61	-0.17	0.5	0.7	0.87	0.62	0.1	0.85	0.43	0.14	0.57	-0.54		0.58	-0.42	-0.95	0.98	0.74	0.52	-0.01	0.51	0.3	0.29
Inventory	0.9	0.56	0.63	0.97	0.41	0.82	0.63	0.68	0.91	0.15	0.75	0.17	0.1	0.93	-0.11	0.58		-0.31	-0.64	0.7	0.76	0.84	0.52	0.81	0.59	0.59
Other Current Assets	-0.04	-0.5	-0.23	-0.21	0.39	0.04	-0.83	-0.28	-0.07	0.6	-0.34	0.18	0.66	-0.09	0.73	-0.42	-0.31		0.41	-0.42	-0.59	0.11	-0.17	0.03	0.36	0.37
Other Stockholder Equity	-0.69	-0.93	-0.7	-0.71	0.05	-0.61	-0.69	-0.93	-0.7	-0.15	-0.88	-0.46	-0.14	-0.61	0.44	-0.95	-0.64	0.41		-0.96	-0.74	-0.58	-0.01	-0.63	-0.45	-0.44
Total Liab	0.7	0.96	0.74	0.72	-0.02	0.6	0.74	0.92	0.71	0.12	0.92	0.39	0.15	0.67	-0.44	0.98	0.7	-0.42	-0.96		0.83	0.62	0.11	0.58	0.38	0.37
Property Plant And Equipment Gross	0.61	0.76	0.63	0.7	0.19	0.53	0.8	0.81	0.61	-0.03	0.86	0.09	-0.07	0.66	-0.31	0.74	0.76	-0.59	-0.74	0.83		0.56	0.36	0.46	0.27	0.26
Total Current Assets	0.96	0.46	0.51	0.89	0.62	0.91	0.25	0.69	0.89	0.62	0.69	0.2	0.61	0.96	0.19	0.52	0.84	0.11	-0.58	0.62	0.56		0.27	0.82	0.86	0.86
Short Term Debt	0.23	0.01	0.39	0.44	0.22	0.21	0.36	0.07	0.27	-0.18	0.15	-0.19	-0.25	0.34	0.14	-0.01	0.52	-0.17	-0.01	0.11	0.36	0.27		0.17	0.08	0.08
Intangible Assets	0.92	0.47	0.55	0.86	0.49	0.85	0.36	0.67	0.9	0.37	0.69	0.35	0.3	0.84	0.05	0.51	0.81	0.03	-0.63	0.58	0.46	0.82	0.17		0.78	0.78
Common Stock Total Equity	0.83	0.21	0.42	0.68	0.71	0.87	-0.04	0.59	0.7	0.81	0.53	0.22	0.71	0.75	0.48	0.3	0.59	0.36	-0.45	0.38	0.27	0.86	0.08	0.78		1.0
Common Stock	0.83	0.2	0.41	0.68	0.71	0.87	-0.05	0.58	0.7	0.81	0.52	0.22	0.71	0.75	0.48	0.29	0.59	0.37	-0.44	0.37	0.26	0.86	0.08	0.78	1.0

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Lincoln Electric Account Relationship Matchups

Lincoln Electric fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	2.4B	2.3B	2.6B	3.2B	3.4B	1.8B
Short Long Term Debt Total	747.3M	718.2M	769.8M	1.2B	1.2B	1.2B
Other Current Liab	563.1M	309.1M	362.7M	397.0M	413.6M	434.3M
Total Current Liabilities	563.1M	549.4M	755.9M	852.9M	754.6M	414.0M
Total Stockholder Equity	819.1M	790.3M	863.9M	1.0B	1.3B	886.8M
Property Plant And Equipment Net	529.3M	522.1M	511.7M	544.9M	628.6M	425.9M
Net Debt	547.7M	460.9M	576.9M	1.0B	766.1M	804.4M
Retained Earnings	2.7B	2.8B	3.0B	3.3B	3.7B	3.9B
Accounts Payable	273.0M	226.1M	330.2M	352.1M	325.4M	172.0M
Cash	199.6M	257.3M	193.0M	197.2M	393.8M	218.1M
Non Current Assets Total	1.3B	1.2B	1.3B	1.6B	1.7B	1.8B
Non Currrent Assets Other	766.3M	188.1M	791.0M	167.8M	107.5M	185.5M
Cash And Short Term Investments	199.6M	257.3M	193.0M	197.2M	393.8M	226.9M
Net Receivables	374.6M	373.5M	429.1M	541.5M	580.6M	315.8M
Common Stock Shares Outstanding	62.7M	60.2M	60.1M	58.7M	58.2M	63.2M
Liabilities And Stockholders Equity	2.4B	2.3B	2.6B	3.2B	3.4B	1.8B
Non Current Liabilities Total	989.0M	974.8M	972.5M	1.3B	1.3B	1.4B
Inventory	393.7M	381.3M	539.9M	665.5M	562.9M	332.1M
Other Current Assets	681.8M	100.3M	127.6M	153.7M	155.8M	148.0M
Other Stockholder Equity	(1.7B)	(1.7B)	(1.9B)	(2.0B)	(2.2B)	(2.1B)
Total Liab	1.6B	1.5B	1.7B	2.1B	2.1B	2.2B
Property Plant And Equipment Gross	529.3M	522.1M	1.4B	1.4B	1.5B	1.5B
Total Current Assets	1.1B	1.1B	1.3B	1.6B	1.7B	967.1M
Accumulated Other Comprehensive Income	(275.9M)	(302.2M)	(257.4M)	(275.3M)	(229.8M)	(241.3M)
Short Term Debt	35.0M	14.2M	62.9M	103.9M	15.5M	30.0M
Intangible Assets	177.8M	134.5M	149.4M	202.7M	186.7M	96.6M
Other Liab	237.6M	259.3M	255.4M	147.3M	169.4M	169.0M
Other Assets	196.9M	210.0M	791.0M	165.1M	189.9M	140.0M
Long Term Debt	712.3M	715.5M	717.1M	1.1B	1.1B	1.2B
Good Will	337.1M	335.6M	430.2M	665.3M	694.5M	729.2M
Treasury Stock	(2.0B)	(2.1B)	(2.3B)	(2.5B)	(2.2B)	(2.1B)
Property Plant Equipment	529.3M	522.1M	511.7M	544.9M	626.6M	462.1M
Current Deferred Revenue	(308.0M)	128.9M	141.5M	18.3M	92.5M	97.1M
Net Tangible Assets	303.3M	319.2M	863.9M	166.2M	149.6M	142.1M
Noncontrolling Interest In Consolidated Entity	905K	979K	(193K)	(99K)	(89.1K)	(84.6K)
Retained Earnings Total Equity	2.7B	2.8B	3.0B	3.3B	3.8B	2.5B

Pair Trading with Lincoln Electric

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lincoln Electric position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lincoln Electric will appreciate offsetting losses from the drop in the long position's value.

Moving together with Lincoln Stock

0.88	KMT	Kennametal	Pair Corr
0.8	RBC	RBC Bearings	Pair Corr
0.9	SNA	Snap On	Pair Corr

Moving against Lincoln Stock

0.78	SWK	Stanley Black Decker	Pair Corr
0.71	EML	Eastern	Pair Corr
0.7	QEPC	QEP Co Inc	Pair Corr
0.67	TKR	Timken Company	Pair Corr

The ability to find closely correlated positions to Lincoln Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lincoln Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lincoln Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lincoln Electric Holdings to buy it.

The correlation of Lincoln Electric is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lincoln Electric moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lincoln Electric Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Lincoln Electric can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Lincoln Electric Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lincoln Electric's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lincoln Electric Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lincoln Electric Holdings Stock:

How To Invest In Lincoln

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Is Lincoln Stock a good investment?

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What is Lincoln Electric's Net Worth?

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Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lincoln Electric Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.

You can also try the Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Is Industrial Machinery & Supplies & Components space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lincoln Electric. If investors know Lincoln will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lincoln Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.20)

Dividend Share

2.84

Earnings Share

8.38

Revenue Per Share

71.184

Quarterly Revenue Growth

(0.05)

The market value of Lincoln Electric Holdings is measured differently than its book value, which is the value of Lincoln that is recorded on the company's balance sheet. Investors also form their own opinion of Lincoln Electric's value that differs from its market value or its book value, called intrinsic value, which is Lincoln Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lincoln Electric's market value can be influenced by many factors that don't directly affect Lincoln Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Lincoln Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lincoln Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lincoln Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Lincoln Net Income vs Gross Profit Analysis

Net Income vs Gross Profit

Net Income vs Gross Profit Correlation Analysis

Correlation Coefficient

Net Income

Gross Profit

Lincoln Electric fundamental ratios Correlations

Lincoln Electric Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Lincoln Electric fundamental ratios Accounts

Pair Trading with Lincoln Electric

Moving together with Lincoln Stock

Moving against Lincoln Stock

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Common Stock	+ 1.0	Common Stock Total Equity
Non Current Liabilities Total	+ 0.99	Short Long Term Debt Total
Total Liab	+ 0.98	Non Current Liabilities Total
Net Receivables	+ 0.97	Total Assets
Accounts Payable	+ 0.97	Total Current Liabilities
Inventory	+ 0.97	Total Current Liabilities

Total Liab	- 0.96	Other Stockholder Equity
Other Stockholder Equity	- 0.95	Non Current Liabilities Total
Other Stockholder Equity	- 0.93	Retained Earnings
Other Stockholder Equity	- 0.93	Short Long Term Debt Total
Other Stockholder Equity	- 0.88	Non Current Assets Total
Other Current Assets	- 0.83	Net Debt