Lear Corporation (LEA)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	46,808,500	42,447,800	39,126,900	34,623,800	40,172,200
Receivables	US$ in thousands	3,681,200	3,451,900	3,041,500	3,269,200	2,982,600
Receivables turnover		12.72	12.30	12.86	10.59	13.47

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $46,808,500K ÷ $3,681,200K
= 12.72

The receivables turnover ratio for Lear Corp. has fluctuated over the past five years. In 2023, the ratio stood at 6.37, indicating that the company collected its accounts receivables approximately 6.37 times during the year. This represents an improvement from the previous year's ratio of 6.05. It is also higher than the ratio in 2021 and 2020, suggesting that Lear Corp. has been more efficient in collecting its receivables in 2023.

However, the 2023 ratio is lower compared to 2019 when the ratio was 6.64. This implies that Lear Corp. may have been slightly less effective in collecting outstanding receivables in 2023 than in 2019. Overall, the trend in the receivables turnover ratio shows some variability but indicates that Lear Corp. has generally been managing its accounts receivables efficiently over the years.