Lear Corporation (LEA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,306,000 | 23,466,900 | 20,891,500 | 19,263,100 | 17,045,500 |
| Property, plant and equipment | US$ in thousands | — | — | 2,854,000 | 2,720,100 | 2,736,200 |
| Fixed asset turnover | — | — | 7.32 | 7.08 | 6.23 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $23,306,000K ÷ $—K
= —
The fixed asset turnover ratio reflects how efficiently a company generates sales revenue from its investment in fixed assets. Looking at the data provided for Lear Corporation, we observe a consistent upward trend in the fixed asset turnover ratio over the years.
In December 2020, the fixed asset turnover stood at 6.23, indicating that Lear generated $6.23 in sales for every $1 investment in fixed assets. By December 2021, this ratio improved to 7.08, showcasing an increase in efficiency in utilizing fixed assets to drive revenue.
Continuing this trend, the fixed asset turnover ratio further climbed to 7.32 by December 2022. This demonstrates that Lear Corporation was able to generate sales at an even higher rate relative to its fixed asset base. However, the data for December 2023 and December 2024 is not available, which limits our ability to provide a complete analysis for those periods.
Overall, the rising trend in Lear Corporation's fixed asset turnover ratios suggests an improvement in the company's operational efficiency and effective utilization of its fixed assets to drive sales. It indicates that the company has been making optimal use of its fixed assets to generate revenue, which can be a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024