Lear Corporation (LEA)
Quick 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 | 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 |
| Receivables | US$ in thousands | 3,681,200 | 4,041,200 | 4,259,700 | — | 3,451,900 | — | — | — | 3,041,500 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.86 | 0.88 | 0.89 | 0.16 | 0.88 | 0.16 | 0.17 | 0.23 | 0.92 | 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,196,300K
+ $4,800K
+ $3,681,200K)
÷ $5,667,200K
= 0.86
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio greater than 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities.
Looking at Lear Corp.'s quick ratio over the past eight quarters, we observe relatively stable values ranging between 1.01 and 1.06. This consistency suggests that Lear Corp. has maintained a strong ability to meet its short-term obligations with its quick assets during this period.
The quick ratio remained above 1 in all quarters, indicating that the company had more than enough liquid assets to cover its current liabilities. Specifically, in Q2 and Q3 of 2023, the quick ratio improved slightly to 1.06 and 1.04, respectively, suggesting an enhanced liquidity position during those periods.
Overall, Lear Corp.'s consistent quick ratio above 1 reflects a healthy liquidity position and indicates a strong ability to meet its short-term financial obligations with its readily available assets throughout the quarters analyzed.
Peer comparison
Dec 31, 2023