Leggett & Platt Incorporated (LEG)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -511,500 | -136,800 | 309,800 | 402,400 | 253,000 |
| Total assets | US$ in thousands | 3,661,600 | 4,634,500 | 5,186,100 | 5,307,300 | 4,754,000 |
| ROA | -13.97% | -2.95% | 5.97% | 7.58% | 5.32% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $-511,500K ÷ $3,661,600K
= -13.97%
The return on assets (ROA) for Leggett & Platt Incorporated has displayed fluctuations over the past years. In December 31, 2020, the ROA stood at 5.32%, indicating that the company generated 5.32 cents of profit for each dollar of assets. Subsequently, the ROA improved to 7.58% by December 31, 2021, showcasing increased efficiency in asset utilization.
However, in December 31, 2022, the ROA slightly decreased to 5.97%, which could indicate a minor decline in the company's profitability relative to its asset base. The trend took a significant downturn by December 31, 2023, as the ROA plummeted to -2.95%, signifying that the company faced challenges generating profits from its assets during that period.
By December 31, 2024, the situation worsened further, with the ROA sinking to -13.97%, indicating a deep decline in profitability relative to the asset base. The negative ROA values in the later years suggest that the company experienced financial difficulties and may have faced challenges in effectively utilizing its assets to generate profits.
Overall, the trend in Leggett & Platt Incorporated's ROA highlights both positive and negative turns in the company's ability to generate profits from its assets, with the latter years reflecting a concerning decline in asset efficiency and profitability.
Peer comparison
Dec 31, 2024