Leggett & Platt Incorporated (LEG)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,669,900 | 4,785,800 | 4,940,100 | 5,091,100 | 5,203,900 | 5,345,700 | 5,373,000 | 5,307,800 | 5,133,700 | 4,979,500 | 4,865,900 | 4,433,300 | 4,329,000 | 4,294,100 | 4,327,500 | 4,703,600 | 4,813,000 | 4,521,700 | 4,442,600 | 4,400,000 |
| Receivables | US$ in thousands | 697,000 | 766,800 | 760,300 | 642,200 | 609,000 | 730,300 | 722,600 | 704,900 | 620,000 | 699,100 | 704,800 | 602,900 | 563,600 | 642,300 | 577,300 | 568,200 | 591,900 | 677,300 | 700,300 | 665,300 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,669,900K ÷ $697,000K
= 6.70
The receivables turnover ratio for Leggett & Platt, Inc. has shown a consistent pattern over the past eight quarters. The ratio has ranged from 6.76 to 7.62, indicating a stable performance in collecting accounts receivable.
The average receivables turnover ratio over this period is approximately 7.22, suggesting that on average, Leggett & Platt collects its outstanding receivables about 7.22 times per year. This indicates that the company manages its accounts receivable efficiently, as a higher turnover ratio generally implies a shorter time frame for collecting payments from customers.
Furthermore, the minimal fluctuations in the receivables turnover ratio over the quarters suggest a steady and effective credit and collection policies in place at Leggett & Platt, Inc. This consistency reflects positively on the company's ability to manage its receivables efficiently and maintain a healthy cash flow.
Overall, the receivables turnover ratio analysis indicates that Leggett & Platt is effectively managing its accounts receivable and demonstrates a strong ability to convert credit sales into cash.
Peer comparison
Dec 31, 2023