Leggett & Platt Incorporated (LEG)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.33 | 74.45 | 73.50 | 77.42 | 76.93 | 77.32 | 77.42 | 79.28 | 79.44 | 83.78 | 88.16 | 91.19 | 89.86 | 91.03 | 86.51 | 84.43 | 69.59 | 64.06 | 62.41 | 66.41 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 72.33 | 74.45 | 73.50 | 77.42 | 76.93 | 77.32 | 77.42 | 79.28 | 79.44 | 83.78 | 88.16 | 91.19 | 89.86 | 91.03 | 86.51 | 84.43 | 69.59 | 64.06 | 62.41 | 66.41 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.33 + — – —
= 72.33
The cash conversion cycle of Leggett & Platt Incorporated has fluctuated over the past few years. It measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The cash conversion cycle of Leggett & Platt has generally been decreasing from a high of 91.19 days on March 31, 2022, to 72.33 days on December 31, 2024. This trend indicates that the company has been able to manage its working capital more efficiently over this period.
A lower cash conversion cycle indicates that the company is able to sell its inventory more quickly and collect payments from customers faster, leading to improved liquidity and cash flow. It may also suggest effective inventory management practices and favorable payment terms with suppliers and customers.
Overall, the decreasing trend in Leggett & Platt's cash conversion cycle is a positive sign, as it reflects improved efficiency in managing working capital and liquidity, which can contribute to the company's financial health and profitability.
Peer comparison
Dec 31, 2024