Lear Corporation (LEA)
Working capital 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 current assets | US$ in thousands | 7,184,100 | 7,636,900 | 6,994,100 | 6,765,200 | 6,776,700 |
| Total current liabilities | US$ in thousands | 5,447,000 | 5,667,200 | 5,188,300 | 4,759,900 | 5,076,700 |
| Working capital turnover | 13.42 | 11.91 | 11.57 | 9.61 | 10.03 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $23,306,000K ÷ ($7,184,100K – $5,447,000K)
= 13.42
The working capital turnover of Lear Corporation has demonstrated a favorable trend over the past five years. Starting at 10.03 in December 31, 2020, it decreased slightly to 9.61 by December 31, 2021, before showing steady improvement in the subsequent years. The ratio increased to 11.57 in December 31, 2022, further rising to 11.91 in December 31, 2023, and reaching the highest level of 13.42 by December 31, 2024.
A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue. Lear Corporation's increasing trend in the working capital turnover ratio reflects its ability to effectively manage its current assets and liabilities to support its business operations. This efficiency can lead to improved cash flow and profitability in the long run.
Peer comparison
Dec 31, 2024