Leggett & Platt Incorporated (LEG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 240,300 | 320,600 | 485,000 | 596,000 | 400,500 |
| Total assets | US$ in thousands | 3,661,600 | 4,634,500 | 5,186,100 | 5,307,300 | 4,754,000 |
| Operating ROA | 6.56% | 6.92% | 9.35% | 11.23% | 8.42% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $240,300K ÷ $3,661,600K
= 6.56%
The operating return on assets (ROA) for Leggett & Platt Incorporated has displayed varying trends over the years.
In December 31, 2020, the operating ROA stood at 8.42%, indicating that the company generated 8.42 cents of operating income for every dollar of assets it possessed. The following year, December 31, 2021, saw an improvement in performance as the operating ROA increased to 11.23%, reflecting better utilization of assets to generate operating profits.
However, by December 31, 2022, the operating ROA slightly decreased to 9.35%, showing a relative decline in asset productivity compared to the previous year. The trend continued in December 31, 2023, with the operating ROA dropping further to 6.92%, suggesting potential challenges in optimizing asset efficiency.
The most recent data point in December 31, 2024, reveals a slight decrease in the operating ROA to 6.56%, indicating a continued struggle to generate operating income efficiently relative to the assets employed.
Overall, Leggett & Platt Incorporated's operating ROA has shown fluctuations, with periods of improvement followed by declines. This suggests that the company may need to focus on enhancing asset management strategies to consistently improve its operating profitability relative to its asset base.
Peer comparison
Dec 31, 2024