Lear Corporation (LEA)

Working capital 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
Total current assets	US$ in thousands	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	6,406,700	6,618,000	6,736,300	6,597,600
Total current liabilities	US$ in thousands	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	4,666,200	4,907,800	5,027,000	4,914,400
Working capital turnover		23.78	21.90	21.42	21.77	23.51	23.16	23.66	21.16	19.51	11.93	10.24	9.60	10.01	10.75	13.07	12.19	11.33	11.61	11.65	12.18

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $46,841,200K ÷ ($7,636,900K – $5,667,200K)
= 23.78

Based on the provided data, the working capital turnover for Lear Corp. has been relatively stable over the past eight quarters, ranging from a low of 10.38 in Q1 2022 to a high of 11.91 in Q4 2023. This ratio measures how efficiently the company is using its working capital to generate sales revenue.

A higher working capital turnover ratio indicates that Lear Corp. is effectively managing its liquidity and is able to convert its working capital into revenue more frequently. This suggests strong efficiency in utilizing its current assets to fund its operations.

The consistency in the working capital turnover ratio indicates that Lear Corp. has been able to maintain a good balance between its current assets and liabilities over the analyzed period. This stability is a positive sign of effective working capital management and operational efficiency within the company.

However, it is important to note that a single ratio does not provide a complete picture of a company's financial health and performance. It is recommended to analyze this ratio in conjunction with other financial metrics and industry benchmarks to gain a more comprehensive understanding of Lear Corp.'s financial position.