Lear Corporation (LEA)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	2,464,500	2,750,000	2,750,000	2,600,000	2,600,000	2,600,000	2,600,000	2,600,000	2,868,600	2,306,300	2,310,900	2,315,600	2,633,300	2,299,800	2,302,700	2,306,800	2,293,700	2,339,000	2,339,000	1,965,600
Total stockholders’ equity	US$ in thousands	4,918,800	4,858,800	4,980,500	4,857,700	4,678,800	4,303,300	4,440,600	4,650,000	4,643,400	4,622,400	4,782,900	4,580,100	4,467,300	4,132,800	3,867,700	4,023,500	4,349,700	4,203,800	4,236,400	4,245,300
Debt-to-capital ratio		0.33	0.36	0.36	0.35	0.36	0.38	0.37	0.36	0.38	0.33	0.33	0.34	0.37	0.36	0.37	0.36	0.35	0.36	0.36	0.32

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 been relatively stable over the past eight quarters, ranging from 0.35 to 0.38. This indicates that the company typically maintains a moderate level of debt in relation to its total capital structure. A ratio of 0.36, which was reported in the most recent quarter Q4 2023, suggests that approximately 36% of Lear Corp.'s capital is financed through debt, while the remaining 64% is financed through equity.

The consistency of the debt-to-capital ratio over the quarters implies that Lear Corp. has been maintaining a balanced approach to its capital structure, neither overly leveraged nor too conservatively financed. Investors and creditors may view this stability positively, as it suggests a disciplined approach to managing the company's financial leverage.

However, it is important to monitor changes in the debt-to-capital ratio over time, as any significant deviations may signal shifts in the company's financial risk profile or strategic priorities. Overall, the current debt-to-capital ratio of 0.36 indicates that Lear Corp. has relatively healthy capitalization with a reasonable level of debt in its capital structure.