Leggett & Platt Incorporated (LEG)

Quick 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 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
Receivables US$ in thousands 697,000 766,800 760,300 642,200 609,000 730,300 722,600 704,900 620,000 699,100 704,800 602,900 563,600 642,300 577,300 568,200 591,900 677,300 700,300 665,300
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
Quick ratio 0.84 1.03 1.08 1.02 0.96 0.99 0.75 0.76 0.73 0.70 0.85 0.94 0.91 0.94 1.01 1.26 0.90 1.00 1.10 1.07

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($365,500K + $—K + $697,000K) ÷ $1,262,600K
= 0.84

The quick ratio of Leggett & Platt, Inc. fluctuated over the past eight quarters, ranging from 0.80 to 1.16. Generally, a quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its most liquid assets.

In the most recent quarter (Q4 2023), the quick ratio decreased to 0.84 from the previous quarter's 1.04. This decline suggests a potential weakening in the company's ability to cover its current liabilities with its quick assets, which consist of cash, marketable securities, and accounts receivable.

Looking back over the past two years, the quick ratio has shown some variability, with peaks in Q1 2023 and Q4 2022, indicating stronger liquidity positions during those periods. Conversely, Q2 2022 saw the lowest quick ratio at 0.80, which might have signaled a liquidity challenge at that time.

Overall, it is essential for Leggett & Platt to maintain a healthy quick ratio above 1 to ensure sufficient liquidity for short-term obligations. Management should continue to monitor and manage the company's liquidity position to mitigate the risk of potential cash flow problems in the future.


Peer comparison

Dec 31, 2023

Company name
Symbol
Quick ratio
Leggett & Platt Incorporated
LEG
0.84
La-Z-Boy Incorporated
LZB
1.11
Tempur Sealy International Inc
TPX
0.58