Lear Corporation (LEA)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	46,841,200	44,599,700	44,046,700	43,128,300	42,449,200	40,184,400	39,218,700	38,963,900	39,129,000	19,603,000	20,263,000	17,919,300	17,024,400	16,598,800	16,494,400	19,023,900	19,727,600	19,852,400	19,920,300	20,507,400
Property, plant and equipment	US$ in thousands	2,977,400	2,886,000	2,913,100	2,840,900	2,854,000	2,704,900	2,778,700	2,826,700	2,720,100	2,696,300	2,695,000	2,681,100	2,736,200	2,627,300	2,618,300	2,608,400	2,704,200	2,599,700	2,620,600	2,593,300
Fixed asset turnover		15.73	15.45	15.12	15.18	14.87	14.86	14.11	13.78	14.39	7.27	7.52	6.68	6.22	6.32	6.30	7.29	7.30	7.64	7.60	7.91

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $46,841,200K ÷ $2,977,400K
= 15.73

Lear Corp.'s fixed asset turnover has shown consistency and improvement over the past eight quarters. The company's fixed asset turnover ratio ranged from 6.76 to 7.97 during the period, indicating that for every dollar invested in fixed assets, Lear generated between $6.76 and $7.97 in sales revenue.

The upward trend in fixed asset turnover from Q1 2022 to Q3 2023 suggests that Lear has become more efficient in utilizing its fixed assets to generate sales. This improvement is a positive sign of the company's operational efficiency and ability to generate revenue from its fixed asset base.

However, the slight decline in fixed asset turnover in Q4 2023 compared to the previous quarter may indicate a potential slowdown in asset utilization efficiency. Consequently, it would be beneficial for Lear Corp. to monitor this metric closely and ensure that its investments in fixed assets continue to generate meaningful returns.

Overall, Lear Corp.'s fixed asset turnover performance demonstrates solid operational efficiency and effective utilization of its asset base to drive revenue generation.