Lear Corporation (LEA)

Operating return on assets (Operating ROA)

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
Operating income (ttm) US$ in thousands 829,200 820,900 814,800 776,300 849,800 845,500 810,800 730,300 607,900 475,300 343,200 419,000 625,200 856,700 1,087,900 588,100 454,100 310,000 331,900 931,400
Total assets US$ in thousands 14,027,500 14,818,100 14,681,900 14,872,000 14,695,500 14,613,700 14,798,500 14,404,200 13,763,000 13,379,200 13,345,400 13,727,300 13,352,400 13,046,000 13,263,700 13,422,500 13,198,600 12,894,700 12,269,000 13,022,300
Operating ROA 5.91% 5.54% 5.55% 5.22% 5.78% 5.79% 5.48% 5.07% 4.42% 3.55% 2.57% 3.05% 4.68% 6.57% 8.20% 4.38% 3.44% 2.40% 2.71% 7.15%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $829,200K ÷ $14,027,500K
= 5.91%

Operating return on assets (Operating ROA) is a key financial ratio that indicates a company's efficiency in generating profits from its assets used in operations.

Looking at the data provided for Lear Corporation, we observe fluctuations in the operating ROA over the quarters. The trend shows that Lear Corporation's operating ROA has been varying over the years, with some periods showing improvement while others exhibit a decline.

For the year 2020, the operating ROA starts at 7.15% in March, decreases to 2.71% in June, and further drops to 2.40% by September, reflecting a decreasing trend. However, there is a noticeable recovery in the ratio towards the end of the year, reaching 3.44% by December.

In 2021, the operating ROA shows a mixed performance, with fluctuations between 4.38% in March, increasing to 8.20% by June, then decreasing to 4.68% by December. This indicates some instability in the operational efficiency and asset utilization during the year.

From 2022 to 2024, Lear Corporation's operating ROA remains relatively stable, fluctuating between 2.57% to 5.91% during this period. The ratio hovers around the 5% mark, indicating a moderate level of efficiency in generating earnings relative to the assets employed in operations.

Overall, Lear Corporation's operating ROA demonstrates variability over the quarters, suggesting fluctuations in operational performance and asset utilization efficiency. It is essential for the company to focus on maintaining a consistent and improving trend in the operating ROA to enhance profitability and shareholder value.