Leggett & Platt Incorporated (LEG)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -173,400 | 403,500 | 521,900 | 327,800 | 403,400 |
| Revenue | US$ in thousands | 4,632,700 | 5,203,900 | 5,133,700 | 4,329,000 | 4,813,000 |
| Pretax margin | -3.74% | 7.75% | 10.17% | 7.57% | 8.38% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-173,400K ÷ $4,632,700K
= -3.74%
The pretax margin of Leggett & Platt, Inc. has shown varying performance over the past five years. In 2023, the company reported a negative pretax margin of -3.67%, indicating that its pre-tax earnings were less than its total revenue. This decline from the previous year's pretax margin of 7.84% suggests a significant deterioration in profitability.
The company's pretax margin peaked in 2021 at 10.29%, reflecting strong profitability and efficient cost management. However, there was a slight drop in 2022 and a more significant decrease in 2023. The downward trend from 2021 to 2023 may signal challenges in maintaining profitability levels and controlling costs.
Comparing the pretax margin to 2019 and 2020, there was a notable improvement between 2019 (9.05%) and 2020 (7.50%), followed by a rebound in 2021. The fluctuating performance of the pretax margin over the years indicates that Leggett & Platt, Inc. has experienced changes in its profitability levels, potentially influenced by factors such as operating expenses, revenue growth, and economic conditions.
Peer comparison
Dec 31, 2023