Lear Corporation (LEA)

Return on assets (ROA)

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income US$ in thousands 572,500 327,700 373,900 158,500 753,600
Total assets US$ in thousands 14,695,500 13,763,000 13,352,400 13,198,600 12,680,700
ROA 3.90% 2.38% 2.80% 1.20% 5.94%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $572,500K ÷ $14,695,500K
= 3.90%

The Return on Assets (ROA) ratio measures a company's ability to generate profit from its assets. It indicates how efficiently a company is utilizing its assets to generate earnings.

Analyzing Lear Corp.'s ROA over the past five years, we observe fluctuations in the ratio. In 2023, the ROA stood at 3.90%, showing an improvement compared to the previous year's 2.38%. This indicates an enhancement in the company's ability to generate profit relative to its total assets in the most recent year.

In 2021, the ROA was 2.80%, reflecting a slight decline from the previous year's 3.90%. However, it remained higher than the 2020 figure of 1.20%, suggesting a recovery in asset efficiency.

The significant ROA of 6.23% in 2019 stands out as a peak performance compared to the subsequent years. This indicates that Lear Corp. was able to generate substantial profit relative to its assets in that particular year.

Overall, despite the fluctuations observed in Lear Corp.'s ROA over the past five years, there seems to be a general trend of improvement in asset utilization efficiency, with the company showing increased profitability relative to its total assets in the most recent year compared to prior years.


Peer comparison

Dec 31, 2023