Lear Corporation (LEA)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	572,500	327,700	373,900	158,500	753,600
Revenue	US$ in thousands	46,808,500	42,447,800	39,126,900	34,623,800	40,172,200
Net profit margin		1.22%	0.77%	0.96%	0.46%	1.88%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $572,500K ÷ $46,808,500K
= 1.22%

The net profit margin of Lear Corp. has fluctuated over the past five years, ranging from a low of 0.93% in 2020 to a high of 3.99% in 2019. In 2023, the net profit margin improved to 2.44%, showing an increase from the previous year.

The net profit margin is a key financial ratio that indicates the percentage of revenue that translates into profit after all expenses have been deducted. An increasing net profit margin is generally considered positive as it shows the company's ability to control costs and generate more profit from its revenue.

Although the net profit margin of Lear Corp. has shown variability over the years, the recent improvement in 2023 is a positive sign for the company's profitability. Continued monitoring of this ratio will be important to assess the company's financial performance and efficiency in converting revenue into profit.