Leggett & Platt Incorporated (LEG)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.19 | 7.89 | 7.28 | 6.86 | 7.64 | 5.48 | 5.18 | 4.82 | 5.20 | 5.10 | 6.98 | 6.66 | 6.95 | 7.62 | 6.11 | 5.53 | 7.06 | 7.43 | 6.73 | 5.01 |
The analysis of Leggett & Platt Incorporated's activity ratios reveals important insights into the efficiency of the company's operations.
1. Inventory Turnover: The inventory turnover ratio indicates how many times the company's inventory is sold and replaced during a specific period. Leggett & Platt's inventory turnover has been gradually decreasing over the past few years, from 5.50 in March 2020 to 5.05 in December 2024. This downward trend suggests that the company's inventory is not being sold as quickly as before, which may indicate inefficiencies in managing inventory levels or changes in demand for its products.
2. Receivables Turnover: The receivables turnover ratio measures how efficiently the company is collecting outstanding receivables from customers. However, the data provided shows that this information is missing for all periods. Without this data, it is challenging to assess the company's effectiveness in managing its accounts receivable.
3. Payables Turnover: Similar to receivables turnover, payables turnover indicates how efficiently a company is paying its suppliers. Unfortunately, the data for payables turnover is also missing for all periods, making it difficult to evaluate Leggett & Platt's payables management practices.
4. Working Capital Turnover: The working capital turnover ratio reflects how well the company utilizes its working capital to generate sales. Leggett & Platt's working capital turnover has displayed fluctuations over the years, ranging from 4.82 in March 2023 to 7.89 in September 2024. A higher ratio indicates that the company is effectively using its working capital to generate revenue. The fluctuating trend suggests that the company's operational efficiency in utilizing its working capital has varied over the analyzed period.
In conclusion, while Leggett & Platt has shown some fluctuations in its activity ratios, the decreasing trend in inventory turnover warrants further investigation into the company's inventory management strategies to improve operational efficiency and maintain a competitive advantage in the industry.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.33 | 74.45 | 73.50 | 77.42 | 76.93 | 77.32 | 77.42 | 79.28 | 79.44 | 83.78 | 88.16 | 91.19 | 89.86 | 91.03 | 86.51 | 84.43 | 69.59 | 64.06 | 62.41 | 66.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, let's analyze Leggett & Platt Incorporated's activity ratios:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 66.41 days on March 31, 2020, to a low of 72.33 days on December 31, 2024. This indicates that the company is managing its inventory efficiently and turning over its inventory faster in recent years.
2. Days of Sales Outstanding (DSO):
- The data does not provide specific information on days of sales outstanding for Leggett & Platt Incorporated, as it shows "— days" across all periods. This lack of information hinders the analysis of the company's accounts receivable collection efficiency.
3. Number of Days of Payables:
- Similar to DSO, the data shows "— days" for the number of days of payables across all periods, which indicates a lack of information on the company's payables turnover and payment policies.
In conclusion, the analysis of Leggett & Platt Incorporated's activity ratios based on the provided data suggests that the company is effectively managing its inventory levels, but further details are needed to assess its accounts receivable collection efficiency and payables turnover.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.92 | 4.92 | 5.00 | 5.32 | 5.67 | 5.65 | 6.82 | 5.21 | 6.31 | 5.05 | 5.66 | 5.45 | 5.40 | 5.36 | 5.74 |
| Total asset turnover | 1.20 | 1.18 | 1.18 | 1.00 | 1.02 | 0.95 | 0.96 | 0.96 | 0.99 | 1.02 | 1.01 | 0.98 | 0.96 | 0.94 | 0.93 | 0.89 | 0.90 | 0.91 | 0.93 | 0.93 |
The Fixed Asset Turnover ratio for Leggett & Platt Incorporated, which measures the efficiency of the company in generating revenues from its investment in fixed assets, has fluctuated over the past few years. The ratio showed a general increasing trend from March 31, 2020, to March 31, 2022, indicating improved utilization of fixed assets. However, the ratio experienced some volatility in the subsequent periods, with a peak at 6.82 on March 31, 2022, followed by a decline.
On the other hand, the Total Asset Turnover ratio, which reflects how efficiently the company utilizes all its assets to generate sales, exhibited fluctuations as well. The ratio remained relatively stable around 0.9 to 1.0 from March 31, 2020, to December 31, 2023, with some slight variations. There was a significant increase in the ratio towards the end of 2023 and into 2024, with values above 1.0, suggesting improved asset utilization efficiency during those periods.
In summary, while the Fixed Asset Turnover ratio for Leggett & Platt showed a mix of increasing and decreasing trends with some volatility, the Total Asset Turnover ratio displayed a more stable performance with an overall improvement towards the end of 2023 and into 2024.