Leggett & Platt, Incorporated: Company Profile and SWOT Analysis by ICDResearch

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									Leggett & Platt, Incorporated

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Leggett & Platt, Incorporated                                         Financial Snapshot

                                                                      Operating Performance
Fast Facts
                                     No. 1 Leggett Road, Carthage,    The company reported revenue of US$3,359.10
Headquarters Address
                                     64836,United States of America   million during the fiscal year 2010 (2010). The
                                                                      company's revenue declined at a compounded rate of
Telephone                            + 1 417 3588131
                                                                      -5.81% during 2006–2010, with an annual growth of
                                                                      9.95% over 2009. In 2010, the company recorded an
Fax                                  + 1 417 3588449                  operating margin of 8.57%, as against 7.54% in 2009.

Website                              www.leggett.com
                                                                      Revenue and Margins
Ticker Symbol, Stock Exchange        LEG, New York Stock Exchange

Number of Employees                  18,500

Fiscal Year End                      December

Revenue (in US$ million)             3,359.10




SWOT Analysis

Strengths                            Weaknesses                       Return on Equity

Diversified Customer Base            Declining Revenues               The company recorded a return on equity (ROE) of
                                                                      11.72% for 2010, as compared to its peers, Herman
                                                                      Miller, Inc. (Ticker: MLHR), Advance Auto Parts, Inc.
Strong Market Position               Geographical Concentration       (Ticker: AAP) and Genuine Parts Company (Ticker:
                                                                      000270), which recorded ROEs of 35.33%, 33.29%
Wide Product Range                                                    and 17.02% respectively. The company reported a
                                                                      net profit margin of 8.57% in 2010.
Opportunities                        Threats
                                                                      Return on Equity
Divestments of Non Performing
                                     Foreign Exchange Risk
Businesses

Expansion in International Markets   Higher Cost of Raw Materials

Rising E-Commerce Business in the
                                     Rise in Minimum Wages
US




                                                                      Liquidity Position

                                                                      The company reported a current ratio of 2.33 in 2010,
                                                                      as compared to its peers, Herman Miller, Inc.,
                                                                      Advance Auto Parts, Inc. and Genuine Parts
                                                                      Company, which recorded current ratios of 1.26, 1.15
                                                                      and 2.24 respectively. As of December 2010, the
                                                                      company recorded cash and short-term investments
                                                                      of worth US$244.50 million, against US$2.20 million
                                                                      current debt. The company reported a debt to equity
                                                                      ratio of 0.52 in 2010 as compared to its peers,
                                                                      Herman Miller, Inc., Advance Auto Parts, Inc. and
                                                                      Genuine Parts Company, which recorded debt to
                                                                      equity ratios of 3.81, 0.33 and 0.18 respectively.




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Leggett & Platt, Incorporated - SWOT Profile                                                                 Page 1
Leggett & Platt, Incorporated

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
      2.3.6       Liquidity ............................................................................................................................................................21
3     SWOT Analysis ...................................................................................................................................... 22
    3.1       SWOT Analysis - Overview .............................................................................
								
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