Lear Corporation (LEA)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,464,500	2,600,000	2,868,600	2,633,300	2,293,700
Total assets	US$ in thousands	14,695,500	13,763,000	13,352,400	13,198,600	12,680,700
Debt-to-assets ratio		0.17	0.19	0.21	0.20	0.18

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,464,500K ÷ $14,695,500K
= 0.17

The debt-to-assets ratio of Lear Corp. has remained relatively stable over the past five years, fluctuating within a narrow range between 0.18 and 0.19. This indicates that the company has kept a conservative level of debt in relation to its total assets during this period. The consistent ratio suggests that Lear Corp. has been successfully managing its debt levels and has not significantly increased its financial leverage. A ratio below 1 signifies that the company's assets are predominantly financed by equity rather than debt, which can be viewed positively by investors and creditors as it indicates a lower financial risk. Overall, Lear Corp.'s debt-to-assets ratio demonstrates a prudent financial management approach over the years.