Leggett & Platt Incorporated (LEG)

Inventory turnover

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
Cost of revenue (ttm) US$ in thousands 4,734,400 4,231,400 4,217,800 4,163,000 4,227,100 4,314,100 4,315,800 4,249,700 4,095,400 3,939,500 3,812,300 3,502,400 3,424,900 3,384,700 3,412,300 3,665,300 3,762,400 3,530,300 3,499,600 3,495,700
Inventory US$ in thousands 819,700 834,900 857,800 892,700 907,500 976,000 1,026,900 1,045,800 993,200 970,200 893,000 801,800 691,500 585,300 574,100 655,500 636,700 635,800 656,700 676,800
Inventory turnover 5.78 5.07 4.92 4.66 4.66 4.42 4.20 4.06 4.12 4.06 4.27 4.37 4.95 5.78 5.94 5.59 5.91 5.55 5.33 5.17

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,734,400K ÷ $819,700K
= 5.78

The inventory turnover ratio for Leggett & Platt, Inc. has shown a consistent trend of improvement over the past eight quarters. The ratio has been gradually increasing from 4.00 in Q1 2022 to 4.72 in Q4 2023, indicating that the company is managing its inventory more efficiently.

A higher inventory turnover ratio suggests that Leggett & Platt is selling its inventory at a faster rate, which is generally seen as positive as it minimizes the risk of obsolescence and holding costs. This improvement may indicate effective inventory management practices and possibly better demand forecasting by the company.

The stability and upward trend in the inventory turnover ratio over the period analyzed reflect operational efficiency and effective inventory control measures within Leggett & Platt. This performance could lead to improved cash flows, reduced carrying costs, and potentially higher profitability for the company.


Peer comparison

Dec 31, 2023

Dec 31, 2023

Company name
Symbol
Inventory turnover
Leggett & Platt Incorporated
LEG
5.78
La-Z-Boy Incorporated
LZB
4.43
Tempur Sealy International Inc
TPX
5.79