Leggett & Platt Incorporated (LEG)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.20 | 72.02 | 74.23 | 78.27 | 78.36 | 82.58 | 86.85 | 89.82 | 88.52 | 89.89 | 85.50 | 83.56 | 73.69 | 63.12 | 61.41 | 65.28 | 61.77 | 65.74 | 68.49 | 70.67 |
| Days of sales outstanding (DSO) | days | 54.48 | 58.48 | 56.17 | 46.04 | 42.72 | 49.86 | 49.09 | 48.47 | 44.08 | 51.24 | 52.87 | 49.64 | 47.52 | 54.60 | 48.69 | 44.09 | 44.89 | 54.67 | 57.54 | 55.19 |
| Number of days of payables | days | 41.34 | 46.07 | 43.91 | 48.42 | 44.76 | 43.36 | 50.91 | 53.42 | 54.70 | 56.25 | 58.59 | 55.89 | 58.85 | 53.28 | 38.66 | 42.73 | 44.96 | 48.31 | 47.24 | 45.02 |
| Cash conversion cycle | days | 76.33 | 84.43 | 86.50 | 75.90 | 76.31 | 89.08 | 85.02 | 84.87 | 77.90 | 84.89 | 79.77 | 77.31 | 62.37 | 64.43 | 71.44 | 66.64 | 61.70 | 72.09 | 78.79 | 80.83 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.20 + 54.48 – 41.34
= 76.33
The cash conversion cycle for Leggett & Platt, Inc. has shown some fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle decreased to 75.96 days compared to the previous quarter, indicating an improvement in its efficiency in managing cash flows. However, this improvement follows a trend of increasing cash conversion cycles in the prior quarters, reaching a peak of 90.23 days in Q3 2022.
Overall, despite some fluctuations, Leggett & Platt, Inc. has generally maintained its cash conversion cycle within the range of 75 to 90 days over the past two years. This suggests that the company is able to efficiently convert its investments in inventory and accounts receivable into cash within a reasonable time frame. Monitoring the cash conversion cycle can provide insights into the company's liquidity and operational efficiency in managing working capital.
Peer comparison
Dec 31, 2023