Leggett & Platt Incorporated (LEG)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,632,700 | 5,203,900 | 5,133,700 | 4,329,000 | 4,813,000 |
| Receivables | US$ in thousands | 697,000 | 609,000 | 620,000 | 563,600 | 591,900 |
| Receivables turnover | 6.65 | 8.54 | 8.28 | 7.68 | 8.13 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,632,700K ÷ $697,000K
= 6.65
The receivables turnover ratio for Leggett & Platt, Inc. has shown a fluctuating trend over the past five years. The ratio decreased slightly from 8.03 in 2019 to 7.59 in 2020 before increasing to 7.79 in 2021. However, in the subsequent years, the ratio slightly decreased to 7.62 in 2022 and further dropped to 7.41 in 2023.
A higher receivables turnover ratio typically indicates that the company is efficiently collecting outstanding receivables from its customers. In the case of Leggett & Platt, Inc., although the ratio has shown some variation, it has generally remained within a relatively consistent range, suggesting that the company has been effectively managing its accounts receivables.
The downward trend in the receivables turnover ratio in recent years may indicate a slower collection of receivables, which could potentially impact the company's liquidity and cash flow. It would be important for stakeholders to further investigate the reasons behind this trend to ensure that the company's credit policies and collection procedures are effective and efficient.
Overall, while the receivables turnover ratio for Leggett & Platt, Inc. has fluctuated over the past five years, it remains within a reasonable range, indicating that the company has been reasonably successful in managing its accounts receivables.
Peer comparison
Dec 31, 2023