Leggett & Platt Incorporated (LEG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 689,400 | 1,333,300 | 1,641,400 | 1,648,600 | 1,390,300 |
| ROE | -74.19% | -10.26% | 18.87% | 24.41% | 18.20% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-511,500K ÷ $689,400K
= -74.19%
Based on the data provided, Leggett & Platt Incorporated's return on equity (ROE) has experienced fluctuations over the years:
1. December 31, 2020: Leggett & Platt had an ROE of 18.20%, indicating that the company was generating a respectable return for its shareholders relative to its equity base.
2. December 31, 2021: The ROE improved to 24.41%, showing an enhancement in the efficiency of utilizing equity to generate profits.
3. December 31, 2022: The ROE remained relatively strong at 18.87%, suggesting a stable performance in generating returns for shareholders.
4. December 31, 2023: There was a significant decline in ROE to -10.26%, which indicates that the company faced challenges in generating profits compared to its equity base. This might raise concerns about the company's operational performance and financial health.
5. December 31, 2024: The ROE plummeted to -74.19%, reflecting a substantial deterioration in the company's ability to generate returns for its shareholders. This drastic decline could be attributed to various factors such as poor financial performance, high debt levels, or inefficient use of equity.
In conclusion, Leggett & Platt's ROE has displayed significant variability over the years, with both positive and negative trends. Investors and stakeholders should closely monitor these fluctuations and investigate the underlying reasons behind the drastic changes in ROE to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2024