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

Company name
Symbol
Receivables turnover
Leggett & Platt Incorporated
LEG
6.70
La-Z-Boy Incorporated
LZB
14.70
Tempur Sealy International Inc
TPX
10.80