Leggett & Platt Incorporated (LEG)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,661,600 | 3,780,100 | 3,838,800 | 4,614,800 | 4,634,500 | 5,077,600 | 5,144,300 | 5,270,000 | 5,186,100 | 5,175,200 | 5,230,600 | 5,341,800 | 5,307,300 | 5,235,100 | 5,150,100 | 4,911,600 | 4,754,000 | 4,663,800 | 4,582,100 | 4,982,000 |
| Total stockholders’ equity | US$ in thousands | 689,400 | 741,000 | 667,600 | 1,288,800 | 1,333,300 | 1,635,900 | 1,668,600 | 1,666,500 | 1,641,400 | 1,562,800 | 1,614,600 | 1,671,400 | 1,648,600 | 1,577,600 | 1,536,000 | 1,456,200 | 1,390,300 | 1,300,000 | 1,214,600 | 1,238,600 |
| Financial leverage ratio | 5.31 | 5.10 | 5.75 | 3.58 | 3.48 | 3.10 | 3.08 | 3.16 | 3.16 | 3.31 | 3.24 | 3.20 | 3.22 | 3.32 | 3.35 | 3.37 | 3.42 | 3.59 | 3.77 | 4.02 |
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 reported periods, declining from 4.02 as of March 31, 2020, to 3.08 as of June 30, 2023. However, there was a significant increase in the ratio to 5.75 as of June 30, 2024, followed by a slight decrease to 5.10 as of September 30, 2024, and a moderate increase to 5.31 as of December 31, 2024.
A high financial leverage ratio indicates that the company relies heavily on debt to finance its operations and growth. This could potentially lead to higher financial risk due to the increased debt obligations. On the other hand, a lower ratio suggests a more conservative capital structure with less reliance on debt.
The trend of the financial leverage ratio for Leggett & Platt Incorporated indicates a recent spike in leverage, which could be a result of increased borrowing for expansion or other strategic initiatives. It is important for stakeholders to closely monitor the leverage ratio to assess the company's ability to meet its debt obligations and manage financial risks effectively.
Peer comparison
Dec 31, 2024