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