Leggett & Platt Incorporated (LEG)
Debt-to-equity 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-equity ratio | 1.34 | 1.09 | 1.26 | 1.11 | 1.21 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,786,400K ÷ $1,333,300K
= 1.34
The debt-to-equity ratio of Leggett & Platt, Inc. has fluctuated over the past five years, ranging from 1.27 to 1.62. The ratio indicates that the company has mainly been financed by debt, with varying levels of leverage relative to equity. In 2023, the debt-to-equity ratio increased to 1.50 from 1.28 in 2022, suggesting a higher proportion of debt financing compared to equity. This could indicate a potential increase in financial risk as the company relies more on debt to fund its operations and growth.
It is important for investors and stakeholders to closely monitor changes in the debt-to-equity ratio, as a high ratio may imply increased financial leverage and associated risks. Conversely, a lower ratio may indicate a stronger equity position and greater financial stability. Assessing the trend in this ratio over time can provide insight into the company's capital structure decisions and financial health.
Peer comparison
Dec 31, 2023