Lear Corporation (LEA)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,052,900 | 763,900 | 952,100 | 930,400 | 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 |
| Short-term investments | US$ in thousands | 0 | 6,600 | 6,200 | 5,000 | 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 | 8,900 | 7,600 | 7,700 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 5,447,000 | 5,892,700 | 5,817,800 | 5,943,000 | 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 |
| Quick ratio | 0.19 | 0.13 | 0.16 | 0.16 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,052,900K
+ $0K
+ $—K)
÷ $5,447,000K
= 0.19
The quick ratio of Lear Corporation has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The quick ratio, which measures the company's ability to meet its short-term obligations with its most liquid assets, has experienced both improvements and declines.
At the beginning of the period on March 31, 2020, the quick ratio was 0.46, indicating that Lear Corporation had $0.46 of liquid assets available for every $1 of current liabilities. The ratio decreased steadily over the following quarters, reaching its lowest point of 0.16 on June 30, 2022.
There was a slight recovery in the quick ratio in the subsequent quarters, with fluctuations in the range of 0.16 to 0.29 until December 31, 2023. However, by the end of the period on December 31, 2024, the quick ratio had improved to 0.19.
The overall analysis suggests that Lear Corporation experienced challenges in maintaining sufficient liquid assets relative to its short-term obligations during the period under review. It is important for the company to closely monitor its liquidity position and continue to strengthen its ability to meet short-term financial commitments.
Peer comparison
Dec 31, 2024