Leggett & Platt Incorporated (LEG)
Working capital 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 |
| Total current assets | US$ in thousands | 1,881,400 | 1,886,200 | 1,905,800 | 2,014,800 | 1,958,000 | 2,001,000 | 2,091,800 | 2,138,000 | 2,065,300 | 1,983,600 | 1,894,800 | 1,789,000 | 1,658,100 | 1,518,300 | 1,410,300 | 1,782,000 | 1,538,100 | 1,604,600 | 1,703,000 | 1,659,000 |
| Total current liabilities | US$ in thousands | 1,262,600 | 1,009,100 | 955,600 | 968,600 | 968,100 | 965,000 | 1,331,400 | 1,351,200 | 1,335,700 | 1,338,000 | 1,107,100 | 995,600 | 1,006,000 | 947,400 | 775,500 | 854,700 | 928,100 | 920,800 | 900,300 | 867,000 |
| Working capital turnover | 7.55 | 5.46 | 5.20 | 4.87 | 5.26 | 5.16 | 7.07 | 6.75 | 7.04 | 7.71 | 6.18 | 5.59 | 6.64 | 7.52 | 6.82 | 5.07 | 7.89 | 6.61 | 5.53 | 5.56 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,669,900K ÷ ($1,881,400K – $1,262,600K)
= 7.55
Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. In the case of Leggett & Platt, Inc., the working capital turnover has fluctuated over the past eight quarters.
In Q4 2023, the working capital turnover ratio reached 7.64, reflecting a significant improvement from the previous quarter. This suggests that Leggett & Platt was able to generate $7.64 in sales for every dollar of working capital invested during the quarter.
Comparing Q4 2023 to the same period last year (Q4 2022), there has been a slight improvement from 5.20 to 7.64, indicating that the company has become more efficient in managing its working capital to drive sales growth.
Overall, the trend in Leggett & Platt's working capital turnover shows some variability, but there seems to be a general improvement in efficiency in recent quarters. This could indicate better inventory management, credit control, or overall working capital optimization strategies. Further analysis and comparison with industry peers would provide additional insights into the company's financial performance.
Peer comparison
Dec 31, 2023