Leggett & Platt Incorporated (LEG)
Debt-to-equity ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,786,400 | 1,785,900 | 1,785,400 | 1,784,900 | 1,784,400 | — | — | — | 2,082,300 | — | — | — | 1,587,600 | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,333,300 | 1,635,100 | 1,668,000 | 1,666,500 | 1,640,700 | 1,562,200 | 1,614,000 | 1,670,800 | 1,648,000 | 1,575,800 | 1,534,200 | 1,455,700 | 1,424,600 | 1,299,500 | 1,214,200 | 1,238,200 | 1,312,000 | 1,255,200 | 1,238,200 | 1,194,700 |
| Debt-to-equity ratio | 1.34 | 1.09 | 1.07 | 1.07 | 1.09 | 0.00 | 0.00 | 0.00 | 1.26 | 0.00 | 0.00 | 0.00 | 1.11 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
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 been fluctuating over the past eight quarters, ranging from 1.21 to 1.50. The ratio indicates the proportion of debt and equity the company is using to finance its assets.
A ratio of 1.50 in Q4 2023 suggests that the company has more debt relative to equity, which may indicate higher financial risk. However, it could also imply that the company is leveraging debt to finance growth opportunities or investments.
The trend from Q1 2022 to Q3 2023 shows a general decrease in the debt-to-equity ratio, indicating a potential reduction in financial leverage. This trend may signify that the company is becoming less reliant on debt financing, which could lead to lower interest expenses and improved financial stability.
It is important to further analyze the company's financial statements and consider other factors such as industry benchmarks, market conditions, and management's strategic decisions to gain a comprehensive understanding of Leggett & Platt, Inc.'s financial position and leverage strategy.
Peer comparison
Dec 31, 2023