Lear Corporation (LEA)
Receivables 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 |
| Receivables | US$ in thousands | 3,681,200 | 4,041,200 | 4,259,700 | — | 3,451,900 | — | — | — | 3,041,500 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 12.72 | 11.04 | 10.34 | — | 12.30 | — | — | — | 12.87 | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $46,841,200K ÷ $3,681,200K
= 12.72
The receivables turnover ratio for Lear Corp. has been relatively stable over the past eight quarters, ranging from 5.20 to 6.37. The formula for the receivables turnover ratio is net credit sales divided by average accounts receivable for the period. A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly.
During Q4 2023, Lear Corp. had a receivables turnover ratio of 6.37, which implies that the company collected its accounts receivable approximately 6.37 times over the quarter. This represents an improvement from the previous quarter's ratio of 5.69.
Comparing the Q4 2023 ratio to the ratios from the same quarter in the previous years, Lear Corp. achieved a slightly higher receivables turnover compared to Q4 2022 (6.05). This suggests that the company has been more efficient in collecting its accounts receivable in the most recent quarter.
Consistently high receivables turnover ratios indicate that Lear Corp. has an effective credit and collection policy in place, resulting in quicker cash inflows from its customers. However, it is essential to analyze this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial performance and liquidity management.
Peer comparison
Dec 31, 2023