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Stock impact report

Investors Met With Slowing Returns on Capital At Leggett & Platt (NYSE:LEG) [Yahoo! Finance]

Leggett & Platt, Incorporated (LEG) 
Last leggett & platt, incorporated earnings: 2/3 04:20 pm Check Earnings Report
US:NYSE Investor Relations: leggett.com
Company Research Source: Yahoo! Finance
Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Basically this means that a company has profitable initiatives that it can continue to reinvest in, which is a trait of a compounding machine. Although, when we looked at Leggett & Platt NYSE:LEG ), it didn't seem to tick all of these boxes. Understanding Return On Capital Employed (ROCE) If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Leggett & Platt: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.098 = US$263m ÷ (US$3.8b - US$1.2b) (Based on the trailing twelve months to June 2024) Therefore, Leggett & Platt has an ROCE of 9.8%. Ultimately, that's a low return and it under-performs the Consumer Durables industry average of 14%. Vie Show less Read more
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