Lear Corporation (LEA)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	22,679,700	20,380,700	18,688,600	16,736,300	18,948,800
Inventory	US$ in thousands	1,758,000	1,573,600	1,571,900	1,401,100	1,258,200
Inventory turnover		12.90	12.95	11.89	11.95	15.06

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $22,679,700K ÷ $1,758,000K
= 12.90

Lear Corp.'s inventory turnover has been relatively stable over the last five years, ranging between 11.37 and 14.36. A higher inventory turnover ratio indicates that the company is selling its inventory more frequently during the year, which is generally seen as a positive sign of efficiency and liquidity. In Lear Corp.'s case, the consistent inventory turnover ratio suggests effective management of inventory levels and strong sales performance. However, it is essential to delve deeper into the company's specific industry and business model for a more thorough assessment of the inventory turnover's implications.