Lear Corporation (LEA)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 52.17% | 50.75% | 51.30% | 52.15% | 52.11% | 50.37% | 51.24% | 51.88% | 52.24% | 5.08% | 7.00% | 5.91% | 6.51% | 5.88% | 6.02% | 8.40% | 8.81% | 9.74% | 10.04% | 10.53% |
| Operating profit margin | 1.99% | 2.02% | 1.99% | 1.77% | 1.54% | 1.46% | 1.11% | 1.27% | 1.73% | 4.37% | 5.37% | 3.28% | 2.67% | 1.87% | 2.01% | 4.90% | 5.42% | 6.44% | 6.73% | 7.33% |
| Pretax margin | 1.61% | 1.67% | 1.59% | 1.35% | 1.09% | 0.84% | 0.50% | 0.82% | 1.31% | 3.76% | 4.75% | 2.30% | 1.48% | 0.66% | 0.85% | 3.84% | 4.56% | 5.38% | 5.67% | 6.35% |
| Net profit margin | 1.22% | 1.26% | 1.19% | 0.98% | 0.77% | 0.58% | 0.29% | 0.56% | 0.96% | 2.83% | 3.73% | 1.59% | 0.93% | 0.50% | 0.75% | 3.16% | 3.82% | 4.23% | 4.40% | 5.00% |
Lear Corp.'s profitability ratios have shown a positive trend over the past eight quarters. The gross profit margin has steadily increased from 6.75% in Q4 2022 to 7.29% in Q4 2023, indicating an improvement in the company's ability to control production costs and generate revenue. This suggests that Lear Corp. has become more efficient in managing its cost of goods sold.
Moreover, the operating profit margin has also shown a consistent upward trend, reaching 3.98% in Q4 2023 from 2.60% in Q4 2022. This demonstrates that Lear Corp. has been successful in effectively managing its operating expenses to enhance profitability.
Similarly, the pretax margin and net profit margin have both improved significantly over the quarters, indicating that Lear Corp. has been able to effectively manage its pre-tax and net income relative to its total revenue. The pretax margin increased from 2.60% in Q4 2022 to 3.52% in Q4 2023, while the net profit margin escalated from 1.57% to 2.44% during the same period.
Overall, Lear Corp.'s performance in terms of profitability ratios reflects positive financial management and operational efficiency, leading to enhanced profitability over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 5.94% | 6.58% | 6.82% | 8.29% |
| Return on total capital | 11.57% | 11.11% | 10.33% | 9.10% | 7.69% | 6.30% | 4.17% | 5.70% | 8.03% | 11.92% | 14.86% | 7.39% | 4.96% | 3.26% | 3.85% | 13.05% | 14.93% | 17.72% | 18.51% | 22.33% |
| Return on equity (ROE) | 11.64% | 11.58% | 10.48% | 8.69% | 7.00% | 5.38% | 2.54% | 4.72% | 8.05% | 11.99% | 15.78% | 6.24% | 3.55% | 2.01% | 3.22% | 14.94% | 17.33% | 19.98% | 20.69% | 24.14% |
Lear Corp.'s profitability ratios have shown consistent improvement over the past quarters, reflecting a positive trend in the company's financial performance.
The Operating return on assets (Operating ROA) has been increasing steadily, reaching 6.35% in Q4 2023 from 3.62% in Q1 2022. This indicates that the company is generating more operating income from its assets, showcasing effective asset utilization.
Similarly, the Return on assets (ROA) has also shown a positive upward trajectory, rising to 3.90% in Q4 2023. This suggests that Lear Corp. is becoming more efficient in generating profits relative to its total assets.
The Return on total capital, which measures the return generated by all capital invested in the company, has consistently improved, reaching 12.78% in Q4 2023. This signifies that the company is delivering better returns to its capital providers.
Lastly, the Return on equity (ROE) has shown significant improvement, indicating that Lear Corp. is effectively using shareholder equity to generate profits. The ROE increased to 11.64% in Q4 2023 from 2.54% in Q2 2022, showcasing strong performance in creating value for its shareholders.
Overall, the upward trend in Lear Corp.'s profitability ratios indicates efficient management of assets, capital, and equity, which bodes well for the company's financial health and the potential return for investors.