Lear Corporation (LEA)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,447,000 | 5,667,200 | 5,188,300 | 4,759,900 | 5,076,700 |
| Quick ratio | 0.19 | 0.21 | 0.22 | 0.28 | 0.26 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,052,900K
+ $—K
+ $—K)
÷ $5,447,000K
= 0.19
The quick ratio of Lear Corporation has shown a declining trend over the past five years, decreasing from 0.26 on December 31, 2020, to 0.19 on December 31, 2024. This indicates the company's decreasing ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 suggests potential liquidity issues and may raise concerns about the company's ability to cover its current liabilities without relying on inventory sales. Lear Corporation should closely monitor and improve its liquidity position to ensure financial stability and meet its short-term obligations effectively.
Peer comparison
Dec 31, 2024