Lear Corporation (LEA)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,052,900 | 1,196,300 | 1,114,900 | 1,318,300 | 1,306,700 |
| Short-term investments | US$ in thousands | — | 4,800 | 3,600 | 3,500 | 9,300 |
| Total current liabilities | US$ in thousands | 5,447,000 | 5,667,200 | 5,188,300 | 4,759,900 | 5,076,700 |
| Cash ratio | 0.19 | 0.21 | 0.22 | 0.28 | 0.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,052,900K
+ $—K)
÷ $5,447,000K
= 0.19
The cash ratio of Lear Corporation, a measure of its ability to cover its short-term liabilities with its cash and cash equivalents, has shown fluctuating trends over the past five years. The ratio increased from 0.26 in December 2020 to 0.28 in December 2021, indicating an improvement in the company's liquidity position during that period. However, the ratio declined in the following years, reaching 0.19 by December 2024. This downward trend suggests a decreasing ability to meet short-term obligations solely with cash and cash equivalents. It is essential for Lear Corporation to monitor its cash management practices to ensure sufficient liquidity to cover its near-term liabilities effectively.
Peer comparison
Dec 31, 2024