Lear Corporation (LEA)

Financial leverage 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
Total assets	US$ in thousands	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	12,680,700	12,753,300	12,847,700	12,362,000
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
Financial leverage ratio		2.99	3.01	2.97	2.97	2.94	3.11	3.01	2.95	2.88	2.82	2.77	2.93	2.95	3.12	3.17	3.24	2.92	3.03	3.03	2.91

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,695,500K ÷ $4,918,800K
= 2.99

The financial leverage ratio of Lear Corp. has shown some fluctuations over the past eight quarters. In Q4 2023, the ratio was 2.99, which was relatively stable compared to the previous quarter at 3.01. However, compared to the same quarter in the previous year (Q4 2022), the company's leverage ratio has slightly increased from 2.94.

Overall, the trend in the financial leverage ratio indicates that Lear Corp. has been effectively managing its debt levels relative to its equity position. The ratio has mostly been hovering around the 3.0 mark, which suggests that the company is utilizing a moderate level of debt to finance its operations.

The slight increase in the leverage ratio from Q4 2022 to Q4 2023 may indicate that Lear Corp. has taken on slightly more debt during this period. It is crucial for investors and stakeholders to monitor this ratio closely to ensure that the company's debt levels remain sustainable and do not pose excessive financial risk.