Leggett & Platt Incorporated (LEG)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 6.70 | 6.24 | 6.50 | 7.93 | 8.54 | 7.32 | 7.44 | 7.53 | 8.28 | 7.12 | 6.90 | 7.35 | 7.68 | 6.69 | 7.50 | 8.28 | 8.13 | 6.68 | 6.34 | 6.61 |
| 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 |
| Working capital turnover | 7.55 | 5.46 | 5.20 | 4.87 | 5.26 | 5.16 | 7.07 | 6.75 | 7.04 | 7.71 | 6.18 | 5.59 | 6.64 | 7.52 | 6.82 | 5.07 | 7.89 | 6.61 | 5.53 | 5.56 |
Inventory Turnover: Leggett & Platt, Inc. has maintained stable inventory turnover ratios over the last eight quarters, averaging around 4.50 to 4.75. This indicates that the company is effectively managing its inventory levels and turning over its inventory multiple times within a year.
Receivables Turnover: The receivables turnover ratios have fluctuated slightly over the quarters but have generally remained within a range of 6.75 to 7.50. This suggests that Leggett & Platt, Inc. is efficient in collecting payments from its customers, with an average period of around 50 to 60 days.
Payables Turnover: The payables turnover ratios have shown some variability, ranging from 6.50 to 8.30 over the last eight quarters. A higher turnover ratio indicates that Leggett & Platt, Inc. is paying its suppliers more frequently, which may positively impact its relationship with suppliers but could also reflect stricter credit terms from suppliers.
Working Capital Turnover: The working capital turnover ratios have also demonstrated some fluctuations, with values ranging from 4.82 to 7.64. This metric reflects how efficiently Leggett & Platt, Inc. is using its working capital to generate sales. Higher turnover ratios suggest better utilization of working capital and more effective management of liquidity.
In summary, Leggett & Platt, Inc. shows consistent management of its inventory and receivables turnover, with some variability in payables turnover and working capital turnover. Overall, the firm appears to be effectively managing its activity ratios to enhance operational efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.20 | 72.02 | 74.23 | 78.27 | 78.36 | 82.58 | 86.85 | 89.82 | 88.52 | 89.89 | 85.50 | 83.56 | 73.69 | 63.12 | 61.41 | 65.28 | 61.77 | 65.74 | 68.49 | 70.67 |
| Days of sales outstanding (DSO) | days | 54.48 | 58.48 | 56.17 | 46.04 | 42.72 | 49.86 | 49.09 | 48.47 | 44.08 | 51.24 | 52.87 | 49.64 | 47.52 | 54.60 | 48.69 | 44.09 | 44.89 | 54.67 | 57.54 | 55.19 |
| Number of days of payables | days | 41.34 | 46.07 | 43.91 | 48.42 | 44.76 | 43.36 | 50.91 | 53.42 | 54.70 | 56.25 | 58.59 | 55.89 | 58.85 | 53.28 | 38.66 | 42.73 | 44.96 | 48.31 | 47.24 | 45.02 |
Days of inventory on hand (DOH) measures how efficiently Leggett & Platt manages its inventory. The trend shows that the company has reduced its days of inventory on hand from 91.19 days in Q1 2022 to 77.28 days in Q4 2023, indicating an improvement in inventory turnover and potentially better cash flow management.
Days of sales outstanding (DSO) reflects the average number of days it takes for Leggett & Platt to collect its accounts receivable. The trend indicates a slight increase in DSO from 47.87 days in Q4 2022 to 49.23 days in Q4 2023, which may suggest a slower collection of receivables or changes in credit policies.
The number of days of payables shows how long it takes for Leggett & Platt to pay its suppliers. The trend reveals fluctuations in the number of days of payables, with an increase from 43.99 days in Q3 2022 to 50.55 days in Q4 2023. This indicates a longer period for settling payables, which could be beneficial for cash flow management but may impact relationships with suppliers.
Overall, the activity ratios show that Leggett & Platt has improved its inventory management efficiency but has experienced some challenges with the collection of receivables. The company also seems to be extending the payment period to suppliers, potentially impacting liquidity and supplier relationships.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.98 | 6.16 | 6.26 | 6.47 | 6.74 | 7.21 | 7.16 | 6.91 | 6.57 | 6.38 | 6.19 | 5.72 | 5.52 | 5.47 | 5.43 | 5.81 | 5.79 | 5.53 | 5.43 | 5.43 |
| Total asset turnover | 1.01 | 0.94 | 0.96 | 0.97 | 1.00 | 1.03 | 1.03 | 0.99 | 0.97 | 0.95 | 0.94 | 0.90 | 0.90 | 0.92 | 0.94 | 0.94 | 0.99 | 0.93 | 0.89 | 0.89 |
The fixed asset turnover ratio for Leggett & Platt, Inc. has been relatively stable over the past eight quarters, ranging from 6.05 to 7.13. This indicates that the company generates between $6.05 and $7.13 in sales for every dollar invested in fixed assets. A decreasing trend in this ratio could imply inefficiencies in asset utilization, while an increasing trend may point to improved efficiency and productivity in utilizing fixed assets.
On the other hand, the total asset turnover ratio for the company has also remained relatively stable, fluctuating between 0.95 and 1.02 over the same period. This ratio signifies that Leggett & Platt, Inc. generates sales equal to around 0.95 to 1.02 times its total assets. A higher total asset turnover ratio generally indicates efficient use of assets to generate sales.
When comparing the fixed asset turnover to the total asset turnover, it appears that the company is more efficient in utilizing its fixed assets to generate sales compared to its total assets. This suggests that Leggett & Platt, Inc. may have a higher proportion of fixed assets relative to its total assets, or that its fixed assets are more actively used in revenue-generating activities.
Overall, the relatively stable performance of both the fixed asset turnover and total asset turnover ratios indicates consistent efficiency in asset utilization by Leggett & Platt, Inc. It would be important to monitor these ratios over time to identify any emerging trends that may impact the company's long-term operational efficiency.