Leggett & Platt Incorporated (LEG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -136,800 | 309,800 | 402,400 | 253,000 | 314,000 |
| Total assets | US$ in thousands | 4,634,500 | 5,186,100 | 5,307,300 | 4,800,000 | 4,855,400 |
| ROA | -2.95% | 5.97% | 7.58% | 5.27% | 6.47% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-136,800K ÷ $4,634,500K
= -2.95%
The return on assets (ROA) for Leggett & Platt, Inc. has exhibited fluctuations in recent years. In 2023, the ROA was at -2.95%, indicating a negative return on the company's assets for that year. This decline in profitability compared to the prior year suggests challenges in generating earnings from the company's assets.
In 2022, the ROA was 5.97%, showing an improvement compared to the previous year. This signifies that the company was more efficient in utilizing its assets to generate profits in 2022.
The ROA peaked at 7.58% in 2021, indicating a strong performance in asset utilization and profitability that year. However, there was a slight decline in 2020, with an ROA of 5.21%, although still reflecting a reasonable return on assets.
In 2019, the ROA was 6.93%, showing a relatively higher return on assets compared to 2020 but slightly lower than the peak in 2021. Overall, the trend in Leggett & Platt, Inc.'s ROA suggests some variability in asset efficiency and profitability over the past five years. Monitoring the ROA can provide insights into the company's ability to generate earnings using its available assets.
Peer comparison
Dec 31, 2023