Leggett & Platt Incorporated (LEG)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands -173,400 281,800 304,400 353,700 403,500 468,200 500,600 530,700 521,900 525,400 529,300 378,500 327,800 298,500 291,800 403,500 423,200 383,400 373,700 367,100
Revenue (ttm) US$ in thousands 4,669,900 4,785,800 4,940,100 5,091,100 5,203,900 5,345,700 5,373,000 5,307,800 5,133,700 4,979,500 4,865,900 4,433,300 4,329,000 4,294,100 4,327,500 4,703,600 4,813,000 4,521,700 4,442,600 4,400,000
Pretax margin -3.71% 5.89% 6.16% 6.95% 7.75% 8.76% 9.32% 10.00% 10.17% 10.55% 10.88% 8.54% 7.57% 6.95% 6.74% 8.58% 8.79% 8.48% 8.41% 8.34%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-173,400K ÷ $4,669,900K
= -3.71%

The pretax margin of Leggett & Platt, Inc. has shown a downward trend over the past few quarters. In Q1 2022, the pretax margin was at its highest point at 10.12%, but it has steadily decreased since then. The pretax margin dropped to 7.84% in Q4 2022 and continued to decline to -3.67% in Q4 2023.

This downward trend indicates that the company's ability to generate profits before accounting for taxes has weakened over time. A negative pretax margin in Q4 2023 suggests that the company's pre-tax profits were insufficient to cover its operating expenses and interest payments during that period.

It is essential for investors and analysts to monitor this trend closely to understand the factors driving the decline in pretax margins and to assess the company's overall financial performance and profitability prospects.


Peer comparison

Dec 31, 2023

Company name
Symbol
Pretax margin
Leggett & Platt Incorporated
LEG
-3.71%
La-Z-Boy Incorporated
LZB
8.00%
Tempur Sealy International Inc
TPX
9.27%