Leggett & Platt Incorporated (LEG)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -107,000 | 340,800 | 365,400 | 428,600 | 477,500 | 663,400 | 686,100 | 708,200 | 699,700 | 692,900 | 696,600 | 532,200 | 468,200 | 482,000 | 483,600 | 610,300 | 640,900 | 581,700 | 561,300 | 547,700 |
| Total assets | US$ in thousands | 4,634,500 | 5,077,600 | 5,144,300 | 5,270,000 | 5,186,100 | 5,175,200 | 5,230,600 | 5,341,800 | 5,307,300 | 5,235,100 | 5,150,100 | 4,911,600 | 4,800,000 | 4,663,800 | 4,582,100 | 4,982,000 | 4,855,400 | 4,857,800 | 5,002,000 | 4,953,800 |
| Operating ROA | -2.31% | 6.71% | 7.10% | 8.13% | 9.21% | 12.82% | 13.12% | 13.26% | 13.18% | 13.24% | 13.53% | 10.84% | 9.75% | 10.33% | 10.55% | 12.25% | 13.20% | 11.97% | 11.22% | 11.06% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-107,000K ÷ $4,634,500K
= -2.31%
Operating Return on Assets (Operating ROA) measures a company's ability to generate earnings from its operational activities relative to its total assets. In the case of Leggett & Platt, Inc., the trend in Operating ROA over the past quarters indicates a gradual decline. The Operating ROA decreased from 10.52% in Q1 2022 to 6.89% in Q4 2023.
This decline suggests that the company's operational efficiency and profitability relative to its total assets have weakened over the quarters. A lower Operating ROA may indicate inefficiencies in the company's operations, possibly due to increased operating expenses, decreased sales, or suboptimal asset utilization.
It is important for Leggett & Platt, Inc. to closely monitor and address the factors contributing to this declining trend in Operating ROA to improve its operational performance and enhance profitability. Identifying areas for operational improvements, cost reduction, and optimizing asset utilization could help the company reverse this trend and enhance its overall financial performance.
Peer comparison
Dec 31, 2023