Leggett & Platt Incorporated (LEG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,333,300 | 1,640,700 | 1,648,000 | 1,424,600 | 1,312,000 |
| Debt-to-capital ratio | 0.57 | 0.52 | 0.56 | 0.53 | 0.55 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,786,400K ÷ ($1,786,400K + $1,333,300K)
= 0.57
The debt-to-capital ratio for Leggett & Platt, Inc. has exhibited some fluctuations over the past five years. It stood at 0.60 as of December 31, 2023, marking an increase from the previous year's ratio of 0.56. This ratio indicates that 60% of the company's capital structure is funded by debt, while the remaining 40% is attributable to equity. Comparing this ratio to historical data, we observe that the ratio was consistently around 0.56 in both 2022 and 2021, slightly higher at 0.58 in 2020, and notably higher at 0.62 in 2019.
The upward trend in the debt-to-capital ratio from 0.56 in 2022 to 0.60 in 2023 suggests an increase in the company's reliance on debt financing relative to its total capital structure. This may indicate an evolving financing strategy or capital allocation decisions made by the company during the period. It is essential for stakeholders, including investors and creditors, to monitor the company's debt levels and assess the associated risks and implications for its financial health and stability.
Peer comparison
Dec 31, 2023