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