Leggett & Platt (Leggett & Platt) Operating Income : $319 Mil (TTM As of Dec. 2023)

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What is Leggett & Platt Operating Income?

Leggett & Platt's Operating Income for the three months ended in Dec. 2023 was $61 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $319 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Leggett & Platt's Operating Income for the three months ended in Dec. 2023 was $61 Mil. Leggett & Platt's Revenue for the three months ended in Dec. 2023 was $1,115 Mil. Therefore, Leggett & Platt's Operating Margin % for the quarter that ended in Dec. 2023 was 5.50%.

Warning Sign:

Leggett & Platt Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.4%.

Leggett & Platt's 5-Year average Growth Rate for Operating Margin % was -6.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Leggett & Platt's annualized ROC % for the quarter that ended in Dec. 2023 was 5.08%. Leggett & Platt's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -94.68%.

Leggett & Platt Operating Income Historical Data

The historical data trend for Leggett & Platt's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Leggett & Platt Operating Income Chart

Leggett & Platt Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Operating Income

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491.00

414.50

548.70

482.70

319.40

Leggett & Platt Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Operating Income	Get a 7-Day Free Trial															84.00	85.70	85.10	87.30	61.30

Leggett & Platt Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $319 Mil.

Leggett & Platt (NYSE:LEG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Leggett & Platt's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	245.2 * ( 1 - 23.01% )	/	( (3974.2	+	3464.8)	/ 2 )
=	188.77948	/	3719.5
=	5.08 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5077.6	-	829.5	-	( 273.9	-	max(0, 1009.1	-	1886.2	+	273.9	))
=	3974.2

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	4634.5	-	804.2	-	( 365.5	-	max(0, 1262.6	-	1881.4	+	365.5	))
=	3464.8

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Leggett & Platt's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-1460.4	/	( ( (976.8 + max(583.6, 0))	+	(978.4 + max(546.2, 0)) )	/	2 )
=	-1460.4	/	( ( 1560.4	+	1524.6 )	/	2 )
=	-1460.4	/	1542.5
=	-94.68 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(626.9	+	834.9	+	66.1)	-	(829.5	+	0	+	114.8)
=	583.6

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(564.9	+	819.7	+	58.9)	-	(804.2	+	12.1	+	81)
=	546.2

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Leggett & Platt's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	61.3	/	1115.1
	=	5.50 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Leggett & Platt Operating Income Related Terms

Thank you for viewing the detailed overview of Leggett & Platt's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Leggett & Platt (Leggett & Platt) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Leggett & Platt Inc (NYSE:LEG) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

LP1:Germany LP1:Germany L1EG34:Brazil

Address

No. 1 Leggett Road, Carthage, MO, USA, 64836

Website

https://www.leggett.com

Leggett & Platt Inc designs and produces engineered components and products found in most homes and automobiles. It operates its business through three segments namely Bedding Products, Specialized Products, and Furniture, Flooring and Textile Products. Serving a broad suite of customers around the world, Leggett & Platt's products include bedding components, automotive seat support and lumbar systems, specialty bedding foam and private label finished mattresses, components for home furniture and work furniture, flooring underlayment, adjustable beds, and various other products.

Executives

Ryan Michael Kleiboeker	officer: SVP-Chief Strategic Plan. Off.	NO.1 LEGGETT ROAD, CARTHAGE MO 64836
Phoebe A Wood	director	PO BOX 1080, LOUISVILLE KY 40201
Scott S Douglas	officer: SVP-Gen. Counsel and Secretary	NO 1 LEGGETT ROAD, CARTHAGE MO 64836
Karl G Glassman	director, officer: Executive Vice President	LEGGETT & PLATT, INCORPORATED, NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Angela Barbee	director	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Benjamin Michael Burns	officer: SVP-Business Support Services	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
James Tyson Hagale	officer: SVP, Pres. - Bedding Products	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Christina Ptasinski	officer: SVP - Chief HR Officer	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
J Mitchell Dolloff	director, officer: President and COO	NO.1 LEGGETT ROAD, CARTHAGE MO 64836
Steven K Henderson	officer: Executive Vice President	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Tammy M Trent	officer: SVP - Chief Accounting Officer	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Jeffrey L. Tate	officer: Executive Vice President - CFO	2211 H.H. DOW WAY, MIDLAND MI 48674
Susan R Mccoy	officer: SVP - Investor Relations	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836
Judy C Odom	director	2140 MERRITT DRIVE, GARLAND TX 75401
Maryelizabeth R Campbell	director	NO. 1 LEGGETT ROAD, CARTHAGE MO 64836