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