Leggett & Platt Incorporated (LEG)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,646,400 | 3,698,300 | 3,751,100 | 3,806,500 | 3,888,900 | 3,941,400 | 4,044,200 | 4,109,900 | 4,169,900 | 4,252,200 | 4,251,400 | 4,185,900 | 4,034,300 | 3,890,200 | 3,767,900 | 3,466,400 | 3,385,700 | 3,334,800 | 3,357,800 | 3,602,500 |
| Inventory | US$ in thousands | 722,600 | 754,400 | 755,400 | 807,400 | 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 | 645,500 | 585,300 | 574,100 | 655,500 |
| Inventory turnover | 5.05 | 4.90 | 4.97 | 4.71 | 4.74 | 4.72 | 4.71 | 4.60 | 4.59 | 4.36 | 4.14 | 4.00 | 4.06 | 4.01 | 4.22 | 4.32 | 5.25 | 5.70 | 5.85 | 5.50 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,646,400K ÷ $722,600K
= 5.05
The inventory turnover of Leggett & Platt Incorporated indicates how efficiently the company manages its inventory. Looking at the data provided, the inventory turnover ratio has fluctuated over the quarters. It was relatively stable around the range of 5.0 to 5.8 in 2020 and the first half of 2021 before showing a downward trend in the subsequent quarters.
Starting from March 31, 2021, the ratio declined to 4.32, reaching its lowest point at 4.00 on March 31, 2022. Even though there was a slight improvement in the following quarters, with a peak of 5.05 on December 31, 2024, the ratio remained lower than the earlier periods.
A decreasing inventory turnover ratio could indicate overstocking, obsolescence, or inefficiencies in managing inventory levels. It's worth further investigation to understand the factors contributing to this trend and if any operational adjustments are needed to optimize inventory management practices.
Peer comparison
Dec 31, 2024
Dec 31, 2024