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