Lear Corporation (LEA)

Total asset 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
Total assets	US$ in thousands	14,695,500	13,763,000	13,352,400	13,198,600	12,680,700
Total asset turnover		3.19	3.08	2.93	2.62	3.17

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $46,808,500K ÷ $14,695,500K
= 3.19

Lear Corp.'s total asset turnover ratio demonstrates the effectiveness of the company in generating revenue from its total assets. The ratio has shown a generally increasing trend over the past five years, indicating an improvement in the company's efficiency in utilizing its assets to generate sales.

In 2023, the total asset turnover ratio reached 1.60, reflecting that for every dollar invested in total assets, the company generated $1.60 in revenue. This signifies that Lear Corp. was able to efficiently leverage its assets to drive sales during the year.

Moreover, the consistent increase in total asset turnover from 2020 to 2023 suggests that Lear Corp. has been successful in optimizing its asset utilization over time. This improvement could be attributed to better inventory management, streamlined operations, and effective asset utilization strategies implemented by the company.

Overall, Lear Corp.'s increasing total asset turnover ratio implies that the company has been effective in maximizing its asset efficiency and generating revenue from its asset base, which can be a positive indicator of operational effectiveness and financial performance.