Lear Corporation (LEA)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	24,438,100	22,632,800	22,597,200	22,492,900	22,118,900	20,239,900	20,097,000	20,213,900	20,442,200	996,100	1,419,400	1,059,000	1,108,900	976,400	992,900	1,598,500	1,737,500	1,933,200	2,000,200	2,160,100
Revenue (ttm)	US$ in thousands	46,841,200	44,599,700	44,046,700	43,128,300	42,449,200	40,184,400	39,218,700	38,963,900	39,129,000	19,603,000	20,263,000	17,919,300	17,024,400	16,598,800	16,494,400	19,023,900	19,727,600	19,852,400	19,920,300	20,507,400
Gross profit margin		52.17%	50.75%	51.30%	52.15%	52.11%	50.37%	51.24%	51.88%	52.24%	5.08%	7.00%	5.91%	6.51%	5.88%	6.02%	8.40%	8.81%	9.74%	10.04%	10.53%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $24,438,100K ÷ $46,841,200K
= 52.17%

Lear Corp.'s gross profit margin has shown a generally positive trend over the past eight quarters. From Q1 2022 to Q4 2023, it has steadily increased from 6.38% to 7.29%. This indicates that the company has been able to improve its efficiency in generating profits from its sales.

The consistent growth in gross profit margin suggests that Lear Corp. has been successful in managing its production costs and pricing strategies effectively. The increase in gross profit margin indicates that the company is generating more profit per dollar of sales, which is a positive sign of financial health and operational efficiency.

The upward trend in gross profit margin is a favorable indicator for investors and stakeholders, as it reflects the company's ability to effectively control costs and maximize profitability. However, it will be important to continue monitoring this metric to ensure that the trend persists and aligns with the company's long-term financial goals.