How much of Leggett & Platt’s revenue comes from haram?

Leggett & Platt earns its revenue from the following segments:

  • Bedding Products:

Includes revenue generated from raw material components for bedding such as steel rods, drawn wires, springs, and specialty foam.

In addition, Leggett and Platt offer finished adjustable beds and provide machinery used by bedding manufacturers to produce and assemble their finished products.

  • Specialized Products:

Includes comfort and convenience systems for automotive seating, tubing and fabricated assemblies for the aerospace industry, and hydraulic cylinders for the material handling, construction, and transportation industries.

  • Furniture, Flooring, & Textile Products:

Includes steel mechanisms, motion hardware, springs, and seat suspensions for reclining chairs, sofas, sleeper sofas, and lift chairs.

In addition, Leggett & Platt offers components, including bases, columns, back rests, casters, and frames for office chairs, as well as control devices that allow chairs to tilt, swivel, and elevate and private label finished products.

The contributions from each of Leggett & Platt’s revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of Leggett & Platt’s revenue comes from anything inherently haram.

Does Leggett & Platt rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income $1,700$3,100$7,400
Total Revenue$2,420,500$4,280,200$4,752,500
Interest Expense $38,800$82,700$90,700
Total Expenses$2,195,200$3,987,400$4,333,400
Interest Income / Revenue0.07%0.07%0.16%
Interest Expense / Total Expense1.77%2.07%2.09%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Leggett & Platt’s operations.

What is Leggett & Platt’s Environmental, Social, and Governance (ESG) impact?

Environment

According to Leggett & Platt’s 2021 Sustainability Report, as of 2020, nearly 40% of Leggett & Platt’s U.S. electric consumption was produced from nuclear energy and other sources of sustainable power.

Additionally, in 2020, over 88% of Leggett & Platt’s Canadian electric consumption was produced by nuclear energy and other sustainable sources.

Social

Leggett & Platt has a Glassdoor rating of 3.5 out of 5.0 from over 200 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes: 

Leggett & Platt has a net positive ESG impact.

Comfort Rating

From Leggett & Platt’s business, financial, and ESG reviews, Practical Islamic Finance rates Leggett & Platt stock as: 

Comfortable to invest in from a Halal perspective.

Sources

Leggett & Platt Reviews 

SUSTAINABILITY REPORT 

Leggett & Platt Q2 2021 10-Q

Leggett & Platt 2020 10-K