Leggett & Platt Incorporated (LEG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.28% | 18.07% | 17.83% | 18.23% | 18.77% | 19.30% | 19.68% | 19.93% | 20.23% | 20.89% | 21.65% | 21.00% | 20.88% | 21.18% | 21.15% | 22.07% | 21.83% | 21.93% | 21.23% | 20.55% |
| Operating profit margin | -2.29% | 7.12% | 7.40% | 8.42% | 9.18% | 12.41% | 12.77% | 13.34% | 13.63% | 13.92% | 14.32% | 12.00% | 10.82% | 11.22% | 11.18% | 12.98% | 13.32% | 12.86% | 12.63% | 12.45% |
| 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% |
| Net profit margin | -2.93% | 4.46% | 4.69% | 5.36% | 5.95% | 6.78% | 7.23% | 7.64% | 7.84% | 8.13% | 8.52% | 6.69% | 5.84% | 5.40% | 5.19% | 6.73% | 6.94% | 6.63% | 6.54% | 6.57% |
The profitability ratios of Leggett & Platt, Inc. have exhibited some fluctuations over the past eight quarters. The gross profit margin has ranged from 17.88% to 19.91% during this period, with a slight decrease in the most recent quarter at 18.07%. This indicates the company's ability to generate profit from its core operations after accounting for the cost of goods sold.
The operating profit margin has shown a declining trend, dropping from 10.73% in Q2 2022 to 6.76% in Q4 2023. This suggests that the company's operating expenses have been increasing relative to its sales revenue, impacting its profitability at the operating level.
The pretax margin has also shown variability, with negative margins in Q4 2023 and Q1 2023, indicating that the company's operating income is not sufficient to cover its interest and non-operating expenses in those quarters. However, the trend has been relatively stable in the preceding quarters, ranging from 6.18% to 10.12%.
Similarly, the net profit margin has fluctuated between 4.44% and 7.73% over the past eight quarters, with a negative margin of -2.90% in Q4 2023. This suggests that the company's profitability after accounting for taxes has been impacted by varying factors, including operating expenses and non-operating items.
Overall, the analysis of Leggett & Platt, Inc.'s profitability ratios highlights the importance of monitoring trends in gross profit margin, operating profit margin, pretax margin, and net profit margin to assess the company's financial performance and sustainability. Further investigation into the underlying factors driving these fluctuations would be beneficial for stakeholders evaluating the company's profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -2.95% | 4.20% | 4.51% | 5.18% | 5.97% | 7.00% | 7.42% | 7.59% | 7.58% | 7.73% | 8.05% | 6.03% | 5.27% | 4.97% | 4.90% | 6.36% | 6.87% | 6.18% | 5.81% | 5.84% |
| Return on total capital | -2.72% | 10.88% | 11.39% | 12.77% | 14.28% | 35.16% | 35.94% | 36.43% | 16.04% | 38.25% | 39.66% | 31.57% | 13.63% | 29.54% | 31.21% | 39.87% | 39.17% | 37.39% | 36.35% | 36.41% |
| Return on equity (ROE) | -10.26% | 13.05% | 13.90% | 16.38% | 18.88% | 23.20% | 24.06% | 24.26% | 24.42% | 25.69% | 27.03% | 20.36% | 17.76% | 17.84% | 18.48% | 25.58% | 25.44% | 23.90% | 23.45% | 24.21% |
Based on the provided data, we can analyze the profitability ratios of Leggett & Platt, Inc. as follows:
1. Operating return on assets (Operating ROA): The operating ROA has been relatively stable over the past eight quarters, ranging from 6.74% to 8.16%. The company's ability to generate operating income from its total assets has shown a slight decline towards the last two quarters.
2. Return on assets (ROA): The ROA fluctuated significantly during the quarters, with a negative return in Q4 2023 and positive returns ranging from 4.20% to 7.59% in the previous quarters. The negative ROA in Q4 2023 indicates that the company generated a net loss compared to its total assets.
3. Return on total capital: The return on total capital has also varied over the quarters, with values ranging from 9.48% to 15.38%. The return on total capital represents the company's ability to generate returns for both debt and equity holders. This ratio has been on a declining trend in the last few quarters.
4. Return on equity (ROE): The ROE has shown a significant variability, with values fluctuating from -10.26% to 24.26% over the quarters. The negative ROE in Q4 2023 indicates a loss in shareholder value. However, the increasing trend in the earlier quarters suggests an improvement in the company's profitability in generating returns for its shareholders.
In summary, Leggett & Platt, Inc. has experienced fluctuations in its profitability ratios over the past eight quarters. The company needs to closely monitor its profitability metrics, especially the ROA and ROE, to ensure sustained growth and value creation for its stakeholders.