Leggett & Platt (Leggett & Platt) Interest Coverage

: 2.89 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Leggett & Platt's Operating Income for the three months ended in Dec. 2023 was $61 Mil. Leggett & Platt's Interest Expense for the three months ended in Dec. 2023 was $-21 Mil. Leggett & Platt's interest coverage for the quarter that ended in Dec. 2023 was 2.89. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Leggett & Platt's Interest Coverage or its related term are showing as below:

LEG' s Interest Coverage Range Over the Past 10 Years
Min: 3.61 Med: 7.23 Max: 12.53
Current: 3.61

LEG's Interest Coverage is ranked worse than
73.02% of 315 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 8.72 vs LEG: 3.61

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Leggett & Platt Interest Coverage Historical Data

The historical data trend for Leggett & Platt's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Leggett & Platt Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

5.41

5.01

7.17

5.65

3.61

Leggett & Platt Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																3.62	3.88	3.68	3.97	2.89

Competitive Comparison

For the Furnishings, Fixtures & Appliances subindustry, Leggett & Platt's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Leggett & Platt Interest Coverage Distribution

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Leggett & Platt's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Leggett & Platt's Interest Coverage falls into.

Leggett & Platt Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Leggett & Platt's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Leggett & Platt's Interest Expense was $-88 Mil. Its Operating Income was $319 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,830 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	319.4	/	-88.4
	=	3.61

Leggett & Platt's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Leggett & Platt's Interest Expense was $-21 Mil. Its Operating Income was $61 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,830 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	61.3	/	-21.2
	=	2.89

The higher the ratio, the stronger the company's Financial Strength is.

Leggett & Platt (NYSE:LEG) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Leggett & Platt Interest Coverage Related Terms

Thank you for viewing the detailed overview of Leggett & Platt's Interest Coverage 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 » Interest Coverage

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