Lear Corporation (LEA)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	23,304,900	23,431,500	23,628,100	23,616,000	23,466,900	22,996,600	22,456,800	21,528,600	20,891,500	20,400,400	19,427,400	19,117,100	19,263,100	19,626,500	20,258,400	17,942,200	17,045,500	16,619,900	16,544,800	19,107,900
Total current assets	US$ in thousands	7,184,100	7,808,500	7,780,800	7,907,700	7,636,900	7,737,700	7,831,600	7,578,600	6,994,100	6,924,700	6,685,400	6,928,500	6,765,200	6,594,000	6,854,300	7,040,800	6,776,700	6,598,500	6,048,900	6,908,500
Total current liabilities	US$ in thousands	5,447,000	5,892,700	5,817,800	5,943,000	5,667,200	5,701,400	5,775,200	5,597,600	5,188,300	5,189,800	5,027,600	5,087,100	4,759,900	4,951,500	4,875,400	5,173,300	5,076,700	5,054,500	4,786,800	5,348,500
Working capital turnover		13.42	12.23	12.04	12.02	11.91	11.29	10.92	10.87	11.57	11.76	11.72	10.38	9.61	11.95	10.24	9.61	10.03	10.76	13.11	12.25

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $23,304,900K ÷ ($7,184,100K – $5,447,000K)
= 13.42

Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales. A higher turnover ratio indicates better efficiency in managing working capital.

Analyzing Lear Corporation's working capital turnover over time reveals fluctuation in the efficiency of its working capital management. The ratio increased steadily from March 31, 2020, to June 30, 2020, indicating improved utilization of working capital. However, there was a slight decline in the turnover ratio in the subsequent quarters.

From December 31, 2021, to March 31, 2022, there was a significant increase in the working capital turnover, suggesting a more effective management of working capital. Subsequently, the ratio fluctuated but generally remained within a relatively stable range.

By December 31, 2024, Lear Corporation's working capital turnover had reached its highest level in the analyzed period, indicating improved efficiency in utilizing working capital to generate sales.

Overall, the trend in Lear Corporation's working capital turnover suggests varying levels of efficiency in managing working capital over the analyzed period, with some fluctuations but a general improvement towards the end of the period.