Lear Corporation (LEA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 914,400 | 929,800 | 927,700 | 726,400 | 698,000 | 694,300 | 659,600 | 730,300 | 607,900 | 496,700 | 353,500 | 475,400 | 675,300 | 884,600 | 1,109,800 | 567,100 | 398,900 | 258,900 | 288,200 | 870,700 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,017,000 | 4,765,200 | 4,801,800 | 4,892,900 | 4,918,800 | 4,858,800 | 4,980,500 | 5,029,400 | 4,830,300 | 4,303,300 | 4,440,600 | 4,825,900 | 4,808,400 | 4,622,400 | 4,782,900 | 4,580,100 | 4,614,900 | 4,276,100 | 3,867,700 | 4,023,500 |
| Return on total capital | 11.41% | 19.51% | 19.32% | 14.85% | 14.19% | 14.29% | 13.24% | 14.52% | 12.59% | 11.54% | 7.96% | 9.85% | 14.04% | 19.14% | 23.20% | 12.38% | 8.64% | 6.05% | 7.45% | 21.64% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $914,400K ÷ ($—K + $8,017,000K)
= 11.41%
The return on total capital for Lear Corporation has fluctuated over the reporting periods provided. From March 31, 2020, to December 31, 2024, the return on total capital ranged from a low of 6.05% in September 30, 2020, to a peak of 23.20% in June 30, 2021. Notably, there was a significant improvement in return on total capital from June 30, 2022, to March 31, 2023, where it increased from 7.96% to 14.52%. The return on total capital remained relatively stable around the mid-teens percentage range for the later periods, with the highest return being 19.51% on September 30, 2024. However, there was a decrease in the return on total capital to 11.41% on December 31, 2024. Overall, the return on total capital for Lear Corporation shows both fluctuations and periods of stability, indicating varying levels of efficiency in generating returns on the company's total capital.
Peer comparison
Dec 31, 2024