Leggett & Platt Incorporated (LEG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,661,600 | 4,634,500 | 5,186,100 | 5,307,300 | 4,754,000 |
| Total stockholders’ equity | US$ in thousands | 689,400 | 1,333,300 | 1,641,400 | 1,648,600 | 1,390,300 |
| Financial leverage ratio | 5.31 | 3.48 | 3.16 | 3.22 | 3.42 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,661,600K ÷ $689,400K
= 5.31
The financial leverage ratio of Leggett & Platt Incorporated has shown fluctuations over the past five years.
As of December 31, 2020, the financial leverage ratio was 3.42, indicating that the company had $3.42 of debt for every $1 of equity. This ratio decreased to 3.22 by the end of 2021, suggesting a slight improvement in the company's leverage position.
In 2022, the financial leverage ratio continued to decline to 3.16, indicating a further reduction in the company's reliance on debt to fund its operations. However, by the end of 2023, the ratio increased to 3.48, showing a slight increase in leverage compared to the previous year.
The most significant change occurred in 2024, where the financial leverage ratio surged to 5.31, representing a substantial increase in the company's debt relative to its equity. This significant jump may require further investigation to understand the reasons behind such a drastic change in the leverage ratio.
Overall, Leggett & Platt Incorporated's financial leverage ratio has varied over the years, indicating shifts in the company's capital structure and debt management strategies. Further analysis of the factors influencing these fluctuations would be necessary to assess the implications for the company's financial health and risk profile.
Peer comparison
Dec 31, 2024