Leggett & Platt Incorporated (LEG)
Total asset 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 |
| Total assets | US$ in thousands | 4,634,500 | 5,186,100 | 5,307,300 | 4,800,000 | 4,855,400 |
| Total asset turnover | 1.00 | 1.00 | 0.97 | 0.90 | 0.99 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,632,700K ÷ $4,634,500K
= 1.00
The total asset turnover ratio measures a company's efficiency in generating revenue from its total assets. A higher ratio indicates that the company is better at utilizing its assets to generate sales.
For Leggett & Platt, Inc., the total asset turnover ratio has been improving over the past five years, increasing from 0.99 in 2019 to 1.02 in 2023. This suggests that the company has become more efficient in utilizing its assets to generate revenue.
The increase in the total asset turnover ratio indicates that Leggett & Platt, Inc. is generating more sales relative to its total assets, which can be a positive sign of operational efficiency and effective asset management. This improved efficiency could be due to various factors, such as better inventory management, increased sales volume, or more effective utilization of fixed assets.
Overall, the trend of increasing total asset turnover ratio for Leggett & Platt, Inc. demonstrates the company's ability to generate more revenue with the same level of assets, which can be seen as a positive sign for investors and stakeholders.
Peer comparison
Dec 31, 2023