Lear Corporation (LEA)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 887,700 | 536,500 | 607,900 | 675,300 | 398,900 |
| Total assets | US$ in thousands | 14,027,500 | 14,695,500 | 13,763,000 | 13,352,400 | 13,198,600 |
| Operating ROA | 6.33% | 3.65% | 4.42% | 5.06% | 3.02% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $887,700K ÷ $14,027,500K
= 6.33%
The operating return on assets (Operating ROA) of Lear Corporation has shown fluctuations over the past five years. Starting at 3.02% on December 31, 2020, the ratio increased to 5.06% by December 31, 2021, indicating an improvement in the company's operating efficiency in generating profits from its assets. However, by December 31, 2022, the Operating ROA declined to 4.42%, suggesting a potential decrease in profitability relative to the assets employed.
In the subsequent years, the Operating ROA further decreased to 3.65% by December 31, 2023, indicating a continued challenge in generating returns from assets. Notably, there was a significant improvement by December 31, 2024, with the Operating ROA increasing to 6.33%, suggesting a rebound in efficiently utilizing assets to generate profits.
Overall, the Operating ROA trend for Lear Corporation showcases variability, with the company experiencing periods of both improvement and decline in operating efficiency and profitability relative to its assets. Monitoring this ratio over time can provide insights into the company's operational performance and asset utilization efficiency.
Peer comparison
Dec 31, 2024