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

Company name
Symbol
Cash conversion cycle
Leggett & Platt Incorporated
LEG
76.33
La-Z-Boy Incorporated
LZB
77.05
Tempur Sealy International Inc
TPX
56.23