Lear Corporation (LEA)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	7,636,900	6,994,100	6,765,200	6,776,700	6,406,700
Total current liabilities	US$ in thousands	5,667,200	5,188,300	4,759,900	5,076,700	4,666,200
Current ratio		1.35	1.35	1.42	1.33	1.37

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $7,636,900K ÷ $5,667,200K
= 1.35

The current ratio of Lear Corp. has remained relatively stable over the past five years, fluctuating between 1.33 and 1.42. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. A ratio above 1.0 suggests that Lear Corp. has sufficient current assets to cover its current liabilities.

Although the current ratio of Lear Corp. has seen minor fluctuations, it has generally been around the industry benchmark of 1.5, indicating that the company has maintained a healthy liquidity position. However, it is important to note that a current ratio alone does not provide a complete picture of a company's financial health and should be considered alongside other financial ratios and factors.