Leggett & Platt Incorporated (LEG)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.57 | 77.28 | 79.44 | 89.86 | 69.59 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 72.57 | 77.28 | 79.44 | 89.86 | 69.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.57 + — – —
= 72.57
The cash conversion cycle of Leggett & Platt Incorporated has shown variations over the past five years. In December 2020, the company had a cash conversion cycle of 69.59 days, which increased to 89.86 days by December 2021. Subsequently, there was a slight decrease in the cycle to 79.44 days by December 2022. In the following year, the cycle improved further to 77.28 days, indicating a more efficient management of cash flow. By December 2024, the cash conversion cycle decreased again to 72.57 days, showcasing a positive trend in the company's ability to convert its investments in inventory and accounts receivable into cash.
Overall, fluctuations in the cash conversion cycle can provide insights into the efficiency of Leggett & Platt's working capital management and operational effectiveness. A lower cash conversion cycle generally indicates that the company is able to collect cash from customers and convert inventory into sales quickly, leading to improved liquidity and potentially higher profitability. Monitoring the cash conversion cycle over time can help stakeholders evaluate the company's financial health and efficiency in managing its cash resources.
Peer comparison
Dec 31, 2024