Lear Corporation (LEA)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,918,800	4,678,800	4,643,400	4,467,300	4,349,700
Debt-to-capital ratio		0.33	0.36	0.38	0.37	0.35

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,464,500K ÷ ($2,464,500K + $4,918,800K)
= 0.33

The debt-to-capital ratio for Lear Corp. has remained relatively stable over the past five years, hovering around 0.35 to 0.36. This indicates that Lear Corp. relies on debt to finance approximately 36% of its capital structure, on average. The consistency in this ratio suggests that Lear Corp. has maintained a balanced mix of debt and equity in its capital structure over the years, which can be a sign of prudent financial management. However, it is important to assess the trend in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health and leverage position.