Leggett & Platt Incorporated (LEG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,786,400 | 1,784,400 | 2,082,300 | 1,587,600 | 1,585,600 |
| Total assets | US$ in thousands | 4,634,500 | 5,186,100 | 5,307,300 | 4,800,000 | 4,855,400 |
| Debt-to-assets ratio | 0.39 | 0.34 | 0.39 | 0.33 | 0.33 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,786,400K ÷ $4,634,500K
= 0.39
The debt-to-assets ratio of Leggett & Platt, Inc. has demonstrated a mixed trend over the past five years. The ratio increased slightly from 0.39 in 2021 to 0.40 in 2022 before reaching 0.43 in 2023. This indicates that the company's reliance on debt to finance its assets has been gradually increasing.
While a higher debt-to-assets ratio can signal potential financial risk due to increased leverage, it can also indicate that the company is effectively utilizing debt to fund operations and investments for growth.
It is worth noting that the debt-to-assets ratio of 0.43 in 2023 is still within a reasonable range, suggesting that Leggett & Platt, Inc. has a relatively healthy balance between debt and assets.
Further analysis of the company's debt structure, interest coverage ratio, and overall financial health would be essential to fully assess the implications of its current debt-to-assets ratio.
Peer comparison
Dec 31, 2023