Lear Corporation (LEA)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,184,100 | 7,636,900 | 6,994,100 | 6,765,200 | 6,776,700 |
| Total current liabilities | US$ in thousands | 5,447,000 | 5,667,200 | 5,188,300 | 4,759,900 | 5,076,700 |
| Current ratio | 1.32 | 1.35 | 1.35 | 1.42 | 1.33 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,184,100K ÷ $5,447,000K
= 1.32
The current ratio of Lear Corporation has shown a relatively stable trend over the past five years, ranging from 1.32 to 1.42. This ratio indicates the company's ability to meet its short-term obligations with its current assets. Generally, a current ratio above 1 suggests that the company is able to cover its current liabilities with its current assets.
In this case, Lear Corporation's current ratio has consistently remained above 1, indicating a healthy liquidity position. The slight fluctuations in the ratio over the years suggest that the company has maintained a balance between its current assets and liabilities. However, it is important to assess the composition of current assets and liabilities to gain a deeper understanding of the company's liquidity management. Overall, based on the current ratio analysis, Lear Corporation seems to have a strong ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2024