Lear Corporation (LEA)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 506,600 | 572,500 | 327,700 | 373,900 | 158,500 |
| Total stockholders’ equity | US$ in thousands | 2,863,900 | 4,918,800 | 4,830,300 | 4,808,400 | 4,614,900 |
| ROE | 17.69% | 11.64% | 6.78% | 7.78% | 3.43% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $506,600K ÷ $2,863,900K
= 17.69%
Lear Corporation's return on equity (ROE) has shown a positive trend over the past five years. Starting at 3.43% on December 31, 2020, the ROE increased to 7.78% by the end of 2021. Subsequently, it exhibited a slight decrease to 6.78% by the end of 2022 before experiencing a significant upturn to 11.64% by the end of 2023. Notably, by December 31, 2024, the ROE reached its highest point at 17.69%.
The upward trajectory of Lear Corporation's ROE indicates an improvement in the company's efficiency in generating profits from shareholders' equity. This upward trend may be attributed to effective management strategies, operational efficiencies, higher profitability, or improved financial leverage. The consistent increase in ROE reflects positively on the company's financial health and its ability to deliver value to its investors.
It is essential for investors and stakeholders to monitor Lear Corporation's ROE over time to assess the company's performance and profitability. Overall, the progression of ROE suggests that Lear Corporation has been successfully increasing its profitability relative to shareholders' equity.
Peer comparison
Dec 31, 2024