Leggett & Platt Incorporated (LEG)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,881,400 | 1,958,000 | 2,065,300 | 1,658,100 | 1,538,100 |
| Total current liabilities | US$ in thousands | 1,262,600 | 968,100 | 1,335,700 | 1,006,000 | 928,100 |
| Current ratio | 1.49 | 2.02 | 1.55 | 1.65 | 1.66 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,881,400K ÷ $1,262,600K
= 1.49
The current ratio for Leggett & Platt, Inc. has shown some fluctuations over the past five years. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, which signifies a healthy liquidity position.
In 2023, the current ratio is 1.49, indicating a slight decrease compared to the previous year. While the current ratio is still above 1, it has decreased compared to 2022, which may suggest potential liquidity challenges or increased short-term obligations.
In 2022, the company had a current ratio of 2.02, reflecting a strong liquidity position with current assets more than twice the current liabilities. This high ratio indicates that Leggett & Platt, Inc. had a significant buffer to cover its short-term obligations.
In 2021, the current ratio was 1.55, showing a slight decrease from the previous year. Although the ratio decreased, it still remained above 1, indicating a sufficient level of current assets to cover current liabilities.
Similarly, in 2020 and 2019, the current ratios were 1.60 and 1.66, respectively. These ratios also indicate that the company had a healthy liquidity position during those years.
Overall, while the current ratio for Leggett & Platt, Inc. has fluctuated over the years, it has generally remained above 1, suggesting the company has had adequate current assets to cover its short-term liabilities. However, the decreasing trend in recent years may warrant further analysis to understand the underlying reasons for the changes in liquidity.
Peer comparison
Dec 31, 2023