Leggett & Platt Incorporated (LEG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the provided data for Leggett & Platt Incorporated, the solvency ratios reflect a consistently low level of debt in relation to the company's assets, capital, and equity.
- The Debt-to-assets ratio remained at 0.00 throughout the reported periods, indicating that the company's total debt was effectively non-existent in relation to its total assets.
- Similarly, the Debt-to-capital ratio and Debt-to-equity ratio were consistently at 0.00 across all the periods, suggesting that the company's debt levels were minimal in comparison to its total capital and equity.
- The Financial leverage ratio, which measures the extent of a company's financial leverage, showed fluctuations over the periods, with the ratio peaking at 5.75 in June 30, 2024. The ratio generally decreased from 4.02 on March 31, 2020, to 3.22 on December 31, 2021, but increased thereafter, indicating a slightly higher level of financial leverage in the later periods.
Overall, the solvency ratios of Leggett & Platt Incorporated indicate a strong financial position with minimal debt relative to its assets, capital, and equity. However, the fluctuations in the Financial leverage ratio towards the later periods suggest a potential increase in leverage that should be monitored for any impact on the company's solvency in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -5.00 | -10.02 | -9.79 | -1.36 | -1.10 | 4.17 | 4.45 | 5.11 | 5.93 | 7.01 | 7.53 | 8.04 | 8.02 | 7.97 | 7.85 | 5.78 | 5.07 | 2.45 | 2.37 | 3.71 |
The interest coverage ratio of Leggett & Platt Incorporated shows a fluctuating trend over the reporting periods. From March 31, 2020, to December 31, 2021, the company's interest coverage ratio steadily increased, indicating its ability to cover interest expenses with operating income improved over time. This positive trend peaked at 8.04 on March 31, 2022, reflecting strong financial health.
However, from June 30, 2022, to December 31, 2024, the interest coverage ratio experienced a declining trend, with negative values in the latter periods. This suggests that the company's operating income may no longer be sufficient to cover its interest expenses, indicating potential financial strain and a risk of default on debt obligations.
The sudden decline in interest coverage ratio to negative values from December 31, 2023, onwards is a cause for concern, indicating a significant deterioration in the company's ability to meet its interest payments. Leggett & Platt Incorporated should closely monitor its financial position and take necessary measures to improve its interest coverage ratio to avoid potential financial distress.