Leggett & Platt Incorporated (LEG)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -88,600 | 479,700 | 581,300 | 352,400 | 501,200 |
| Total assets | US$ in thousands | 4,634,500 | 5,186,100 | 5,307,300 | 4,800,000 | 4,855,400 |
| Operating ROA | -1.91% | 9.25% | 10.95% | 7.34% | 10.32% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-88,600K ÷ $4,634,500K
= -1.91%
Operating return on assets (ROA) measures a company's efficiency in generating operating profits from its total assets. Leggett & Platt, Inc.'s operating ROA has shown a fluctuating trend over the past five years. The operating ROA decreased to 6.89% in 2023 from 9.31% in 2022, indicating a decline in the company's ability to generate operating profits from its assets.
Comparing the most recent value to historical data, the 2023 operating ROA is lower than the 5-year average of 9.56%. Furthermore, the current operating ROA is below the 2021 and 2019 levels, which were 10.34% and 10.75%, respectively. This suggests a potential decrease in operational efficiency or profitability relative to the earlier years.
Overall, Leggett & Platt, Inc.'s operating ROA has shown a downward trend in recent years, which may indicate challenges in effectively utilizing its assets to generate operating profits. Further analysis of the company's operational performance and asset management practices would be necessary to understand the factors contributing to this trend.
Peer comparison
Dec 31, 2023