Lear Corporation (LEA)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	21,666,700	21,623,900	19,481,600	17,871,200	15,936,600
Inventory	US$ in thousands	1,601,100	1,758,000	1,573,600	1,571,900	1,401,100
Inventory turnover		13.53	12.30	12.38	11.37	11.37

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $21,666,700K ÷ $1,601,100K
= 13.53

Lear Corporation's inventory turnover has shown a consistent improvement over the years, indicating an efficient management of its inventory. The inventory turnover ratio, which measures how many times a company's inventory is sold and replaced over a period, increased steadily from 11.37 in 2020 to 13.53 in 2024. This suggests that Lear Corporation has been effectively managing its inventory levels and selling its products efficiently. A higher inventory turnover ratio generally indicates that a company is selling its goods quickly and is not overstocked, which can lead to lower carrying costs and better liquidity. Overall, the rising trend in Lear Corporation's inventory turnover ratio reflects positively on the company's operational performance and efficiency in managing its inventory.