The business behind the dividend
| Measure | LEG | Median | Formula |
|---|---|---|---|
| Return on equity | 23.0% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 11.5% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $282.90m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $281.00m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 7.1% | 14.3% | Operating income ÷ revenue |
| Net margin | 5.8% | 10.1% | Net income ÷ revenue |
| Debt to equity | 1.47x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 3.97x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 2.25x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.54x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.44x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -2.9% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 23.0% | -74.2% | -10.3% | 18.9% | 24.4% | 17.8% | 23.9% | 26.4% | 24.6% | 35.3% | 23.0% |
| Return on capital employed | 11.5% | -19.9% | -5.2% | 10.8% | 15.2% | 9.9% | 11.8% | — | — | — | 10.8% |
| Operating margin | 7.1% | -11.6% | -3.7% | 7.8% | 10.3% | 7.7% | 8.5% | — | — | — | 7.7% |
| Net margin | 5.8% | -11.7% | -2.9% | 6.0% | 7.9% | 5.9% | 6.6% | 7.2% | 7.4% | 10.3% | 6.0% |
| Debt to equity | 1.47x | 2.70x | 1.49x | 1.27x | 1.09x | 1.33x | 1.61x | 1.01x | 1.05x | 0.88x | 1.27x |
| Current ratio | 2.25x | 2.00x | 1.49x | 2.02x | 1.55x | 1.65x | 1.66x | 1.87x | 1.81x | 1.88x | 1.81x |
| Cash conversion | 1.44x | — | — | 1.42x | 0.67x | 2.38x | 2.13x | 1.44x | 1.52x | 1.43x | 1.44x |
How it compares in consumer discretionary
Among the 169 consumer discretionary companies here measured on free cash flow, Leggett & Platt pays out less than 148 of them. The median for that group is 33.1%, against this company’s 9.6%.
Closest on free cash flow
- Flexsteel Industries (FLXS) 9.2%
- Herc Holdings (HRI) 9.4%
- Kelly Services (KELYA) 9.6%
- Signet Jewelers (SIG) 9.9%
Same sector and same denominator, so the figures are comparable. All 197 in consumer discretionary →