Leggett & Platt ROIC
What is the ROIC of Leggett & Platt?
The ROIC of Leggett & Platt, Inc. is -1.73%
What is the definition of ROIC?
Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.
= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)
Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.
ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.
You can calculate ROIC with the following formula:
NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity
The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.
ROIC of companies in the Consumer Discretionary sector on NYSE compared to Leggett & Platt
What does Leggett & Platt do?
Leggett & Platt is an American diversified manufacturer that designs and produces various engineered components and products that can be found in homes and automobiles. The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to produce innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers.
Companies with roic similar to Leggett & Platt
- Northway Resources has ROIC of -1.76%
- Selcodis SA has ROIC of -1.76%
- TCNS Clothing Co has ROIC of -1.75%
- Estre Ambiental has ROIC of -1.75%
- Regional Health Properties Inc has ROIC of -1.74%
- Rockhopper Exploration Plc has ROIC of -1.74%
- Leggett & Platt has ROIC of -1.73%
- Pharol, SGPS S.A has ROIC of -1.73%
- Zhejiang Shibao has ROIC of -1.73%
- Duxton Broadacre Farms has ROIC of -1.72%
- CBL & Associates Properties has ROIC of -1.72%
- SAExploration has ROIC of -1.72%
- Helios Fairfax Partners has ROIC of -1.72%