Leggett & Platt Incorporated (LEG)
Working capital 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 current assets | US$ in thousands | 1,881,400 | 1,958,000 | 2,065,300 | 1,658,100 | 1,538,100 |
| Total current liabilities | US$ in thousands | 1,262,600 | 968,100 | 1,335,700 | 1,006,000 | 928,100 |
| Working capital turnover | 7.49 | 5.26 | 7.04 | 6.64 | 7.89 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,632,700K ÷ ($1,881,400K – $1,262,600K)
= 7.49
The working capital turnover for Leggett & Platt, Inc. has fluctuated over the past five years. In 2023, the working capital turnover ratio increased to 7.64 from 5.20 in 2022, indicating that the company was able to generate revenue more efficiently using its working capital. This improvement suggests that the company managed its current assets and liabilities more effectively in 2023.
Comparing the 2023 ratio with that of 2021 and 2020, where the ratios were 6.95 and 7.06 respectively, the latest figure reflects a positive trend in the utilization of working capital. In 2019, the working capital turnover ratio was 7.79, slightly higher than in 2023, suggesting that the efficiency in generating revenue from working capital was slightly lower in the most recent year.
Overall, the fluctuation in the working capital turnover ratio over the five-year period indicates varying levels of efficiency in utilizing working capital to generate revenue. The company's ability to maintain a relatively high working capital turnover ratio in recent years is indicative of effective management of current assets and liabilities to support revenue generation.
Peer comparison
Dec 31, 2023