Lear Corporation (LEA)

Debt-to-capital ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 2,863,900 4,918,800 4,830,300 4,808,400 4,614,900
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,863,900K)
= 0.00

The debt-to-capital ratio for Lear Corporation has been consistently at 0.00 for the years 2020, 2021, 2022, 2023, and 2024. This indicates that Lear Corporation has not utilized debt as a significant source of financing relative to its total capital structure during this period. A low or zero debt-to-capital ratio suggests that the company is relying more on equity financing or is managing its debt levels effectively, which can be seen as a positive indicator of financial stability and sustainability. It may also imply that the company has strong cash flows or access to other sources of funding without the need for substantial debt. Nevertheless, it is important to consider other financial metrics and factors to gain a comprehensive understanding of Lear Corporation's financial health and performance.