Lear Corporation (LEA)

Financial leverage ratio

		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
Total assets	US$ in thousands	14,027,500	14,818,100	14,681,900	14,872,000	14,695,500	14,613,700	14,798,500	14,404,200	13,763,000	13,379,200	13,345,400	13,727,300	13,352,400	13,046,000	13,263,700	13,422,500	13,198,600	12,894,700	12,269,000	13,022,300
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
Financial leverage ratio		1.75	3.11	3.06	3.04	2.99	3.01	2.97	2.86	2.85	3.11	3.01	2.84	2.78	2.82	2.77	2.93	2.86	3.02	3.17	3.24

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,027,500K ÷ $8,017,000K
= 1.75

The financial leverage ratio of Lear Corporation has shown some fluctuations over the analyzed period. The trend indicates a gradual decrease from 3.24 as of March 31, 2020, to 1.75 as of December 31, 2024, with some variations in between. This ratio measures the extent to which the company is using debt to finance its assets, and a lower financial leverage ratio generally indicates lower financial risk and greater financial stability. The significant drop in the financial leverage ratio towards the end of the period suggests that Lear Corporation has reduced its reliance on debt financing in favor of other forms of capital, which may signal a more conservative financial strategy. However, it's important to note that a very low financial leverage ratio could also imply underutilization of debt to potentially leverage growth opportunities. Overall, a comprehensive analysis of the company's financial performance and strategies, in conjunction with other financial ratios and qualitative factors, would provide a more holistic assessment of Lear Corporation's financial leverage position.