Leggett & Platt Incorporated (LEG)

Cash ratio

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
Cash and cash equivalents US$ in thousands 365,500 273,900 272,400 344,500 316,500 226,200 269,900 327,300 361,700 234,700 231,600 333,800 348,900 245,000 208,800 505,800 247,600 242,000 289,700 263,300
Short-term investments US$ in thousands
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
Cash ratio 0.29 0.27 0.29 0.36 0.33 0.23 0.20 0.24 0.27 0.18 0.21 0.34 0.35 0.26 0.27 0.59 0.27 0.26 0.32 0.30

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($365,500K + $—K) ÷ $1,262,600K
= 0.29

The cash ratio of Leggett & Platt, Inc. has shown some fluctuations over the quarters provided. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

In Q4 2023 and Q3 2023, the cash ratio remained stable at 0.34, indicating that the company had $0.34 in cash and cash equivalents for every $1 of its current liabilities during those quarters. In Q2 2023, the cash ratio slightly improved to 0.36, suggesting a better ability to meet short-term obligations with available cash.

However, in Q1 2023, the cash ratio significantly increased to 0.42, indicating a notable improvement in the company's liquidity position. This implies that Leggett & Platt had $0.42 in cash and cash equivalents for every $1 of current liabilities, reflecting a stronger ability to cover short-term obligations with its liquid assets.

Comparing the data to the same quarters in the previous year, Q4 2022 and Q3 2022 saw slightly lower cash ratios of 0.39 and 0.31, respectively. Q2 2022 and Q1 2022 had even lower cash ratios of 0.26 and 0.29, respectively, indicating relatively weaker liquidity positions in those periods.

Overall, Leggett & Platt's cash ratio has shown some volatility but generally indicates a moderate to strong liquidity position, particularly in Q1 2023 where the company had the highest ratio of 0.42. It is important for investors and analysts to monitor the cash ratio over time to assess the company's ability to meet its short-term obligations using its cash reserves.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash ratio
Leggett & Platt Incorporated
LEG
0.29
La-Z-Boy Incorporated
LZB
0.80
Tempur Sealy International Inc
TPX
0.08