Lear Corporation (LEA)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	933,200	899,600	877,200	763,100	654,300	585,300	435,100	496,500	675,400	856,700	1,087,900	588,100	454,100	310,000	331,900	931,400	1,070,200	1,277,800	1,340,400	1,503,400
Total assets	US$ in thousands	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	12,680,700	12,753,300	12,847,700	12,362,000
Operating ROA		6.35%	6.16%	5.93%	5.30%	4.75%	4.37%	3.26%	3.62%	5.06%	6.57%	8.20%	4.38%	3.44%	2.40%	2.71%	7.15%	8.44%	10.02%	10.43%	12.16%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $933,200K ÷ $14,695,500K
= 6.35%

Lear Corp.'s operating return on assets (operating ROA) has shown a positive trend over the past eight quarters. The operating ROA has steadily increased from 3.62% in Q1 2022 to 6.35% in Q4 2023. This indicates that the company has been effectively generating operating income relative to its total assets.

The consistent improvement in operating ROA suggests that Lear Corp. has been efficiently utilizing its assets to generate profits. This could be attributed to effective cost management, operational efficiency, or successful revenue generation strategies.

Overall, the increasing trend in operating ROA reflects positively on Lear Corp.'s operational performance and indicates a potentially healthy financial position. However, further analysis and comparison with industry benchmarks may provide more insights into the company's performance relative to its peers.