Lear (LEA) Inventory Turnover : 3.07 (As of Dec. 2023)

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What is Lear Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Lear's Cost of Goods Sold for the three months ended in Dec. 2023 was $5,436 Mil. Lear's Average Total Inventories for the quarter that ended in Dec. 2023 was $1,773 Mil. Lear's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.07.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Lear's Days Inventory for the three months ended in Dec. 2023 was 29.76.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Lear's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.30.

Lear Inventory Turnover Historical Data

The historical data trend for Lear's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Lear Inventory Turnover Chart

Lear Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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14.72

11.99

12.02

12.39

13.06

Lear Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															3.16	3.33	3.28	3.07	3.07

Lear Inventory Turnover Calculation

Lear's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	21756.5	/ (	(1573.6	+	1758)	/	2 )
=	21756.5	/	1665.8
=	13.06

Lear's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	5436	/ (	(1788.3	+	1758)	/	2 )
=	5436	/	1773.15
=	3.07

Lear (NYSE:LEA) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Lear's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1773.15	/	5436	*	365 / 4
	=	29.76

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Lear's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1773.15	/	5841.2
	=	0.30

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Lear Inventory Turnover Related Terms

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Lear (LEA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lear Corp (NYSE:LEA) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

LE6N:Germany

Address

21557 Telegraph Road, Southfield, MI, USA, 48033

Website

https://www.lear.com

Lear designs, develops, and manufactures automotive seating and electrical systems and components. Seating components include frames and mechanisms, covers (leather and woven fabric), seat heating and cooling, foam, and headrests. Automotive electrical distribution and connection systems and electronic systems include wiring harnesses, terminals and connectors, on-board battery chargers, high-voltage battery management systems, high-voltage power distribution systems, domain controllers, telematics control units, gateway modules, vehicle positioning for automated and autonomous driving, embedded control software, cloud and mobile device software and services, and cybersecurity. Lear's largest customer and regional market is GM and North America at 20% and 44% of 2022 revenue, respectively.

Executives

Raymond E Scott	director, officer: President & CEO
Carl A. Esposito	officer: SVP & President, E-Systems	21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Jason M Cardew	officer: SVP & CFO	21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Frank C Orsini	officer: EVP & President, Seating	21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Mallett Conrad L Jr	director
Greg C Smith	director	FORD MOTOR COMPANY, 21175 OAKWOOD BLVD, DEARBORN MI 48124
Marianne Vidershain	officer: VP, Treasurer	21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Jonathan F Foster	director	777 THIRD AVE, 30TH FL, NEW YORK NY 10017
Thomas A Didonato	officer: SVP & CAO	AMERICAN EAGLE OUTFITTERS, INC., 150 THORN HILL DRIVE, WARRENDALE PA 15095
Alicia J. Davis	officer: SVP, Corp Dev & Inv Relations	21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033
Roger A Krone	director
Patricia L Lewis	director	C/O UNITEDHEALTH GROUP, 9900 BREN ROAD EAST, MN008-T502, MINNETONKA MN 55343
Bradley M Halverson	director	100 N.E. ADAMS STREET, PEORIA IL 61629
Shari L Burgess	officer: VP & Treasurer
Harry Albert Kemp	officer: SVP, Gen Counsel & Corp Sec	21557 TELEGRAPH ROAD, SOUTHFIELD MI 48033