Leggett & Platt Incorporated (LEG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.35 | 0.35 | 0.34 | 0.34 | 0.00 | 0.00 | 0.00 | 0.39 | 0.00 | 0.00 | 0.00 | 0.33 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.57 | 0.52 | 0.52 | 0.52 | 0.52 | 0.00 | 0.00 | 0.00 | 0.56 | 0.00 | 0.00 | 0.00 | 0.53 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
| Financial leverage ratio | 3.48 | 3.11 | 3.08 | 3.16 | 3.16 | 3.31 | 3.24 | 3.20 | 3.22 | 3.32 | 3.36 | 3.37 | 3.37 | 3.59 | 3.77 | 4.02 | 3.70 | 3.87 | 4.04 | 4.15 |
Based on the solvency ratios of Leggett & Platt, Inc. over the past eight quarters, we can observe the following trends:
1. Debt-to-assets ratio: The debt-to-assets ratio has been relatively stable, ranging from 0.39 to 0.43. This indicates that Leggett & Platt's total debt accounts for around 39% to 43% of its total assets, with a slightly increasing trend in the most recent quarter.
2. Debt-to-capital ratio: The debt-to-capital ratio has also shown consistency, hovering between 0.55 and 0.60. This ratio signifies that debt comprises approximately 55% to 60% of the company's total capital structure, with a mild variation in the last few quarters.
3. Debt-to-equity ratio: The debt-to-equity ratio has been fluctuating, with values ranging from 1.21 to 1.50. This metric illustrates that Leggett & Platt's level of leverage has varied between 121% and 150%, reflecting changes in the proportion of debt to equity funding over the analyzed period.
4. Financial leverage ratio: The financial leverage ratio, which indicates the extent to which the company relies on debt financing, has also demonstrated variability, with values between 3.08 and 3.48. This suggests that Leggett & Platt's financial leverage has fluctuated between 3.08 and 3.48 times, signifying changes in the company's debt obligations relative to equity.
Overall, while the debt ratios of Leggett & Platt, Inc. have exhibited some fluctuations, the company has maintained relatively stable levels of debt within its capital structure, with minor variations seen in the recent quarters. It is essential for stakeholders to continue monitoring these ratios to assess the company's financial risk and solvency position effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.96 | 4.12 | 4.42 | 5.07 | 5.72 | 6.78 | 7.30 | 7.81 | 7.82 | 7.80 | 7.68 | 5.67 | 4.96 | 4.50 | 4.35 | 5.47 | 5.67 | 5.46 | 5.89 | 6.41 |
The interest coverage ratio for Leggett & Platt, Inc. has exhibited a decreasing trend over the last eight quarters. The ratio declined from 7.49 in Q1 2022 to 3.85 in Q4 2023. This indicates that the company's ability to cover its interest expenses with its earnings has weakened over the period.
While the interest coverage ratio above 1 generally indicates that a company is able to meet its interest obligations with its earnings, the declining trend observed for Leggett & Platt, Inc. may raise concerns regarding its ability to service its debt in the long term.
It is important for investors and stakeholders to closely monitor the company's interest coverage ratio and assess the factors driving the decrease to better understand the company's financial health and sustainability.