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