Lear Corporation (LEA)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 23,306,000 | 23,466,900 | 20,891,500 | 19,263,100 | 17,045,500 |
| Total assets | US$ in thousands | 14,027,500 | 14,695,500 | 13,763,000 | 13,352,400 | 13,198,600 |
| Total asset turnover | 1.66 | 1.60 | 1.52 | 1.44 | 1.29 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $23,306,000K ÷ $14,027,500K
= 1.66
Total asset turnover is a key efficiency ratio that measures how effectively a company is utilizing its assets to generate revenue. Lear Corporation's total asset turnover has shown a positive trend over the years, increasing from 1.29 in 2020 to 1.66 in 2024. This indicates that the company has been able to increase its revenue relative to its total assets each year, reflecting improved efficiency in asset utilization.
A total asset turnover of 1.66 in 2024 means that for every dollar of assets Lear Corporation owns, it generated $1.66 in revenue. This suggests that the company has been able to effectively manage and leverage its assets to drive sales growth. This trend is generally viewed positively by investors and analysts, as it demonstrates the company's ability to generate more revenue per dollar of assets invested.
Overall, the increasing trend in Lear Corporation's total asset turnover signifies improved efficiency in utilizing its assets to drive revenue generation, which bodes well for the company's financial performance and operational effectiveness.
Peer comparison
Dec 31, 2024