Leggett & Platt Incorporated (LEG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 16.83% | 16.76% | 16.95% | 17.41% | 17.70% | 17.99% | 17.88% | 18.42% | 18.98% | 19.52% | 19.91% | 20.18% | 20.47% | 20.96% | 21.67% | 20.96% | 20.90% | 21.41% | 21.45% | 22.41% |
| Operating profit margin | 5.23% | 5.51% | 5.97% | 6.67% | 7.07% | 7.57% | 7.83% | 8.56% | 9.39% | 10.31% | 10.66% | 10.74% | 10.87% | 10.92% | 11.38% | 10.07% | 9.46% | 9.55% | 9.46% | 10.90% |
| Pretax margin | -11.61% | -20.72% | -20.09% | -4.32% | -3.67% | 5.87% | 6.18% | 7.02% | 7.84% | 8.86% | 9.43% | 10.12% | 10.29% | 10.55% | 10.82% | 8.43% | 7.50% | 7.18% | 7.04% | 8.89% |
| Net profit margin | -11.67% | -18.53% | -18.05% | -3.45% | -2.90% | 4.44% | 4.71% | 5.42% | 6.02% | 6.86% | 7.31% | 7.73% | 7.93% | 8.13% | 8.48% | 6.60% | 5.78% | 5.45% | 5.29% | 6.86% |
Based on the provided data, we can analyze the profitability ratios of Leggett & Platt Incorporated as follows:
1. Gross Profit Margin:
- The gross profit margin has shown a decreasing trend from 22.41% as of March 31, 2020, to 16.83% as of December 31, 2024.
- The declining trend indicates that the company's ability to generate profits from its core business operations has been decreasing over the years.
2. Operating Profit Margin:
- The operating profit margin has also experienced a downward trajectory, dropping from 10.90% as of March 31, 2020, to 5.23% as of December 31, 2024.
- This decline suggests that the company's efficiency in managing its operating costs and generating profits from its operations has been deteriorating.
3. Pretax Margin:
- The pretax margin fluctuated over the years, reaching a negative position in the last two quarters of 2024 (-20.72% as of September 30, 2024, and -11.61% as of December 31, 2024).
- The negative pretax margins in the latter periods indicate that the company incurred losses before accounting for taxes, which could be a concerning aspect for investors and stakeholders.
4. Net Profit Margin:
- The net profit margin also followed a declining trend, falling from 6.86% as of March 31, 2020, to -11.67% as of December 31, 2024.
- The negative net profit margins at the end of 2023 and 2024 further emphasize the challenges faced by the company in maintaining profitability and sustaining net income levels.
In summary, Leggett & Platt Incorporated has experienced decreasing profitability margins across gross, operating, pretax, and net levels over the years. These trends suggest potential challenges in generating profits, managing operating costs, and sustaining overall financial performance. Investors and analysts may need to closely monitor the company's strategies and financial health to assess its future profitability prospects.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.26% | 6.47% | 7.02% | 6.66% | 7.21% | 7.17% | 7.50% | 8.19% | 9.32% | 10.52% | 10.82% | 10.55% | 10.39% | 10.26% | 10.63% | 8.99% | 8.52% | 8.69% | 8.82% | 10.15% |
| Return on assets (ROA) | -13.97% | -21.78% | -21.24% | -3.44% | -2.96% | 4.20% | 4.51% | 5.18% | 5.97% | 7.00% | 7.42% | 7.59% | 7.58% | 7.64% | 7.92% | 5.89% | 5.21% | 4.96% | 4.93% | 6.39% |
| Return on total capital | -61.52% | -112.93% | -123.14% | -8.80% | -6.97% | 22.13% | 22.95% | 25.75% | 29.40% | 34.83% | 35.60% | 36.08% | 35.95% | 37.53% | 39.00% | 30.98% | 29.00% | 15.31% | 15.96% | 24.93% |
| Return on equity (ROE) | -74.19% | -111.09% | -122.12% | -12.33% | -10.28% | 13.04% | 13.90% | 16.38% | 18.87% | 23.20% | 24.05% | 24.25% | 24.41% | 25.36% | 26.54% | 19.87% | 17.81% | 17.78% | 18.61% | 25.70% |
Based on the provided data, we can see the following trends in Leggett & Platt Incorporated's profitability ratios:
1. Operating Return on Assets (Operating ROA):
- Leggett & Platt's Operating ROA has generally been stable, ranging from a low of 6.47% in September 2024 to a high of 10.82% in June 2022. This ratio measures the company's operating income generated per dollar of assets.
2. Return on Assets (ROA):
- The ROA fluctuated more widely compared to the Operating ROA, indicating volatility in the company's net income efficiency relative to its total assets. The ratio ranged from a low of -21.78% in September 2024 to a high of 7.92% in June 2021.
3. Return on Total Capital:
- Return on Total Capital shows how efficiently Leggett & Platt is utilizing its total capital to generate profits. The ratio fluctuated significantly, with negative values in the later quarters of 2023 and 2024, indicating potential financial challenges.
4. Return on Equity (ROE):
- ROE reflects the return on shareholders' equity investment in the company. Leggett & Platt's ROE also experienced significant fluctuations, with negative values in the latter half of 2023 and 2024, signaling potential issues in generating profits relative to shareholders' equity.
Overall, while Leggett & Platt has shown stable operating profitability in terms of Operating ROA, the company has faced challenges in maintaining consistent profitability ratios like ROA, Return on Total Capital, and ROE. It's important for the company to focus on improving these ratios to ensure sustainable profitability and shareholder value in the future.