Leggett & Platt Incorporated (LEG)

Payables 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
Payables US$ in thousands 536,200 534,100 507,400 552,200 518,400 512,500 602,000 622,000 613,800 607,100 612,000 536,300 552,200 494,100 361,400 429,100 463,400 467,300 452,900 431,200
Payables turnover 8.83 7.92 8.31 7.54 8.15 8.42 7.17 6.83 6.67 6.49 6.23 6.53 6.20 6.85 9.44 8.54 8.12 7.55 7.73 8.11

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,734,400K ÷ $536,200K
= 8.83

The payables turnover ratio for Leggett & Platt, Inc. has shown a relatively stable trend over the past eight quarters, ranging from a low of 6.73 in Q1 2022 to a high of 8.30 in Q3 2022.

The average payables turnover ratio during this period is approximately 7.64, indicating that on average, Leggett & Platt pays off its accounts payable balance about 7.64 times per year.

A higher payables turnover ratio suggests that the company is managing its accounts payable efficiently by paying off its suppliers more frequently. This may be indicative of strong supplier relationships or effective cash management.

Overall, the consistent and relatively high payables turnover ratios for Leggett & Platt, Inc. indicate that the company has been effective in managing its accounts payable and maintaining timely payments to its suppliers.


Peer comparison

Dec 31, 2023

Company name
Symbol
Payables turnover
Leggett & Platt Incorporated
LEG
8.83
La-Z-Boy Incorporated
LZB
12.08
Tempur Sealy International Inc
TPX
8.98