Lear Corporation (LEA)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,918,800 | 4,678,800 | 4,643,400 | 4,467,300 | 4,349,700 |
| ROE | 11.64% | 7.00% | 8.05% | 3.55% | 17.33% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $572,500K ÷ $4,918,800K
= 11.64%
Lear Corp.'s return on equity (ROE) has displayed fluctuating trends over the past five years. In 2023, the ROE stands at 11.64%, showing an improvement compared to the previous year where it was 7.00%. This suggests that the company's ability to generate profits from shareholders' equity has strengthened.
The ROE was relatively higher in 2019 at 18.15%, indicating a peak performance in that year. However, there was a notable dip in 2020, where the ROE was at 3.55%, reflecting a significant decrease in profitability relative to the equity invested.
Overall, while the ROE has been variable, it is crucial to assess the reasons behind these fluctuations to determine the sustainability and efficiency of Lear Corp.'s operations and financial strategies.
Peer comparison
Dec 31, 2023