Lear Corporation (LEA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 6.92% | 6.96% | 6.96% | 7.11% | 7.29% | 7.29% | 7.28% | 7.05% | 6.75% | 6.42% | 5.97% | 6.38% | 7.23% | 8.05% | 8.87% | 7.06% | 6.51% | 5.87% | 6.00% | 8.37% |
| Operating profit margin | 3.56% | 3.50% | 3.45% | 3.29% | 3.62% | 3.68% | 3.61% | 3.39% | 2.91% | 2.33% | 1.77% | 2.19% | 3.25% | 4.37% | 5.37% | 3.28% | 2.66% | 1.87% | 2.01% | 4.87% |
| Pretax margin | 3.14% | 3.20% | 3.17% | 3.11% | 3.31% | 3.37% | 3.30% | 2.94% | 2.44% | 1.95% | 1.32% | 1.99% | 3.03% | 4.06% | 5.02% | 2.62% | 1.76% | 0.95% | 1.15% | 4.06% |
| Net profit margin | 2.17% | 2.33% | 2.30% | 2.28% | 2.44% | 2.45% | 2.32% | 1.96% | 1.57% | 1.14% | 0.58% | 1.15% | 1.94% | 2.82% | 3.73% | 1.59% | 0.93% | 0.50% | 0.75% | 3.15% |
Lear Corporation's profitability ratios exhibit some fluctuations over the reporting periods. The gross profit margin ranged from a low of 5.87% in September 2020 to a peak of 8.87% in June 2021 before stabilizing around 7% in recent periods. Operating profit margin showed a similar trend, hitting a low of 1.77% in June 2022 and reaching a high of 5.37% in June 2021. The pretax margin also displayed variability, with the lowest point at 0.95% in September 2020 and the highest at 5.02% in June 2021. Net profit margin had the lowest value of 0.50% in September 2020 and peaked at 3.73% in June 2021.
Overall, Lear Corporation's profitability margins have shown some volatility but have generally improved since the lower points in 2020, indicating management efforts to enhance operational efficiency and increase profitability. It is important for investors to monitor these ratios consistently to assess the company's sustainable profitability and financial health.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 3.61% | 3.68% | 3.70% | 3.62% | 3.90% | 3.85% | 3.53% | 2.93% | 2.38% | 1.73% | 0.85% | 1.60% | 2.80% | 4.25% | 5.69% | 2.13% | 1.20% | 0.64% | 1.01% | 4.62% |
| Return on total capital | 11.41% | 19.51% | 19.32% | 14.85% | 14.19% | 14.29% | 13.24% | 14.52% | 12.59% | 11.54% | 7.96% | 9.85% | 14.04% | 19.14% | 23.20% | 12.38% | 8.64% | 6.05% | 7.45% | 21.64% |
| Return on equity (ROE) | 6.32% | 11.45% | 11.31% | 11.01% | 11.64% | 11.58% | 10.48% | 8.39% | 6.78% | 5.38% | 2.54% | 4.55% | 7.78% | 11.99% | 15.78% | 6.24% | 3.43% | 1.94% | 3.22% | 14.94% |
Lear Corporation's profitability ratios show varying levels of effectiveness in generating profits from its assets and capital over the reported periods.
1. Operating Return on Assets (Operating ROA) fluctuated between 2.40% and 8.20% during the period under review. The ratio peaked in June 2021 and displayed a gradual decline thereafter. This indicates the company's ability to generate profits from its core operational activities relative to its total assets.
2. Return on Assets (ROA) demonstrates a similar trend, ranging from 0.64% to 5.69%. The highest ROA was recorded in June 2021, reflecting the efficiency of asset utilization and income generation. However, there was some volatility in the ratio over the quarters.
3. Return on Total Capital varied from 6.05% to 23.20%, with a notable increase in the ratio in June 2021. This metric highlights the company's profitability concerning both equity and debt financing. The ratio trended downwards in the following periods but remained relatively healthy.
4. Return on Equity (ROE) ranged between 1.94% and 15.78%, with the highest point observed in June 2021. ROE signifies the return generated for the shareholders' equity investment. The ratio generally demonstrated an upward trend before stabilizing at around 11% in the latter periods.
In summary, Lear Corporation's profitability ratios show mixed performance, with fluctuations in efficiency and profitability levels over the reported quarters. Investors and stakeholders should closely monitor these ratios to assess the company's financial performance and sustainability.