Leggett & Platt Incorporated (LEG)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -511,500 | -823,200 | -815,300 | -158,900 | -137,000 | 213,300 | 231,900 | 272,900 | 309,800 | 362,500 | 388,300 | 405,300 | 402,400 | 400,100 | 407,700 | 289,400 | 247,600 | 231,200 | 226,000 | 318,300 |
| Total stockholders’ equity | US$ in thousands | 689,400 | 741,000 | 667,600 | 1,288,800 | 1,333,300 | 1,635,900 | 1,668,600 | 1,666,500 | 1,641,400 | 1,562,800 | 1,614,600 | 1,671,400 | 1,648,600 | 1,577,600 | 1,536,000 | 1,456,200 | 1,390,300 | 1,300,000 | 1,214,600 | 1,238,600 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-511,500K ÷ $689,400K
= -74.19%
Leggett & Platt Incorporated's return on equity (ROE) exhibited a generally declining trend from March 31, 2020, to December 31, 2022, ranging from a high of 26.54% in June 30, 2021, to a low of 16.38% in March 31, 2023. During this period, the company's ROE remained above 15%, indicating a healthy level of profitability relative to shareholder equity.
However, starting from December 31, 2023, up to December 31, 2024, Leggett & Platt experienced a significant downturn in ROE performance. The ratio turned negative, reaching as low as -122.12% in June 30, 2024, before gradually improving to -74.19% by December 31, 2024.
This sharp decline in ROE suggests a concerning trend for the company, indicating potential financial difficulties or inefficiencies in utilizing shareholder equity to generate profits. It would be essential for stakeholders to closely monitor the company's financial performance and take appropriate actions to address the deteriorating ROE situation.
Peer comparison
Dec 31, 2024