Leggett & Platt Incorporated (LEG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 18.07% | 18.98% | 20.47% | 20.90% |
| Operating profit margin | 32.08% | 6.78% | 9.42% | 11.75% | 9.36% |
| Pretax margin | -67.97% | -3.67% | 7.84% | 10.29% | 7.50% |
| Net profit margin | -68.28% | -2.90% | 6.02% | 7.93% | 5.91% |
Leggett & Platt Inc.'s profitability ratios have shown fluctuations over the years. The gross profit margin decreased from 20.90% in 2020 to 18.07% in 2023 before significantly jumping to 100.00% in 2024. This sharp increase could be due to a various factors such as changes in accounting treatment or significant non-operating income.
The operating profit margin increased from 9.36% in 2020 to 32.08% in 2024, indicating an improvement in operational efficiency and cost management. However, the pretax margin declined from 7.50% in 2020 to -67.97% in 2024, indicating challenges in generating profits before accounting for taxes.
The net profit margin also fluctuated, from 5.91% in 2020 to -68.28% in 2024, suggesting that the company's bottom line performance was impacted by various factors, such as expenses or write-offs that affected net income.
Overall, the company's profitability ratios indicate mixed performance, with improvements in operating profit margins offset by declines in pretax and net profit margins in recent years. Investors and analysts may want to further investigate the reasons behind these fluctuations to better understand the company's financial health and future prospects.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.56% | 6.92% | 9.35% | 11.23% | 8.42% |
| Return on assets (ROA) | -13.97% | -2.95% | 5.97% | 7.58% | 5.32% |
| Return on total capital | -61.40% | -6.35% | 29.66% | 36.04% | 29.21% |
| Return on equity (ROE) | -74.19% | -10.26% | 18.87% | 24.41% | 18.20% |
Leggett & Platt Incorporated's profitability ratios show varying trends over the period from December 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA increased from 8.42% in 2020 to 11.23% in 2021, indicating an improvement in the company's ability to generate operating profits from its assets. However, it declined slightly to 9.35% in 2022 and further dropped to 6.92% in 2023, before decreasing to 6.56% in 2024.
2. Return on Assets (ROA):
- ROA improved from 5.32% in 2020 to 7.58% in 2021, indicating increased profitability in relation to the company's total assets. However, there was a significant decline in ROA to -2.95% in 2023 and further dropped to -13.97% in 2024, reflecting a decrease in profitability relative to its asset base.
3. Return on Total Capital:
- The Return on Total Capital increased from 29.21% in 2020 to 36.04% in 2021, suggesting improved efficiency in generating returns from both equity and debt financing. However, this ratio turned negative in the subsequent years, with notable declines to -6.35% in 2023 and -61.40% in 2024, indicating challenges in utilizing total capital effectively to generate returns.
4. Return on Equity (ROE):
- ROE also showed a mixed trend, increasing from 18.20% in 2020 to 24.41% in 2021 before declining to 18.87% in 2022. However, ROE turned negative in 2023 and 2024, with figures of -10.26% and -74.19% respectively, indicating that the company's profitability in relation to shareholders' equity deteriorated significantly in those years.
Overall, the profitability ratios of Leggett & Platt Incorporated display fluctuations and declines over the period under consideration, with varying levels of performance in utilizing assets, capital, and equity to generate profits.