Lear Corporation (LEA)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,196,300 | 979,700 | 901,900 | 898,500 | 1,114,900 | 842,200 | 828,000 | 1,162,000 | 1,318,300 | 1,099,100 | 1,401,700 | 1,375,400 | 1,306,700 | 1,250,400 | 1,775,500 | 2,449,100 | 1,487,700 | 1,300,900 | 1,269,000 | 1,199,400 |
| Short-term investments | US$ in thousands | 4,800 | 1,700 | 1,800 | 1,100 | 3,600 | 3,400 | 3,300 | 1,800 | 3,500 | 2,700 | 2,700 | 2,600 | 9,300 | — | 7,600 | 7,700 | 17,100 | 16,100 | 15,700 | 13,800 |
| 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 |
| Cash ratio | 0.21 | 0.17 | 0.16 | 0.16 | 0.22 | 0.16 | 0.17 | 0.23 | 0.28 | 0.22 | 0.29 | 0.27 | 0.26 | 0.25 | 0.37 | 0.46 | 0.32 | 0.27 | 0.26 | 0.25 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,196,300K
+ $4,800K)
÷ $5,667,200K
= 0.21
The cash ratio of Lear Corp. has shown fluctuations over the past eight quarters, ranging from 0.31 to 0.40. The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a better ability to meet short-term obligations using liquid assets.
In the last quarter of 2023, the cash ratio was 0.39, indicating that Lear Corp. had $0.39 in cash and cash equivalents for every $1 of current liabilities. This was a positive sign compared to the previous quarter where the ratio was 0.33. However, the cash ratio has been somewhat volatile, with values fluctuating between 0.31 and 0.40 in recent quarters.
Overall, while Lear Corp. appears to have a reasonable level of cash on hand relative to its short-term obligations, it would be beneficial for the company to maintain more stable and consistent cash ratio levels to enhance liquidity and financial stability.
Peer comparison
Dec 31, 2023