Lear Corporation (LEA)

Return on assets (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
Net income (ttm)	US$ in thousands	572,500	562,700	522,100	421,900	327,700	231,700	112,900	219,600	373,900	554,000	754,900	285,800	158,500	82,900	124,400	601,100	753,600	839,800	876,400	1,025,000
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
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%

December 31, 2023 calculation

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

Based on the provided data on Lear Corp.'s return on assets (ROA) spanning from Q1 2022 to Q4 2023, the company's ROA has shown a consistent upward trend over the past eight quarters.

The ROA increased from 1.60% in Q1 2022 to 3.90% in Q4 2023, indicating an improvement in the company's ability to generate profit from its assets.

The steady growth in ROA suggests that Lear Corp. has been effectively utilizing its assets to generate profits, which is a positive sign of operational efficiency and effective management.

This improvement in ROA could be attributed to various factors such as cost management, efficient asset utilization, revenue growth, or strategic investments. It is essential for the company to maintain this upward trend in ROA to sustain profitability and create value for its shareholders in the long run.