Leggett & Platt Incorporated (LEG)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 4,854,300 4,227,100 4,095,400 3,424,900 3,789,000
Inventory US$ in thousands 819,700 907,500 993,200 691,500 636,700
Inventory turnover 5.92 4.66 4.12 4.95 5.95

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $4,854,300K ÷ $819,700K
= 5.92

The inventory turnover ratio for Leggett & Platt, Inc. has been relatively stable over the past five years, with values ranging from 4.06 to 5.81. This ratio indicates how efficiently the company manages its inventory by showing how many times the inventory is sold and replaced during the year.

The increasing trend from 2020 to 2019 suggests that the company was managing its inventory more efficiently during those years, with the inventory turning over at a higher rate. However, the slight decrease in inventory turnover from 2021 to 2023 may indicate a potential slowing down of inventory management efficiency.

While the company's inventory turnover ratios are generally within a reasonable range, further analysis would be needed to understand the reasons behind the fluctuations and to determine if there are any underlying issues affecting the company's inventory management practices. Overall, the inventory turnover ratios provide valuable insights into the efficiency of Leggett & Platt, Inc.'s inventory management over the past five years.


Peer comparison

Dec 31, 2023

Company name
Symbol
Inventory turnover
Leggett & Platt Incorporated
LEG
5.92
La-Z-Boy Incorporated
LZB
4.43
Tempur Sealy International Inc
TPX
5.79