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 Average Total Inventories for the quarter that ended in Dec. 2023 was $1,773 Mil. Lear's Revenue for the
three
months ended in Dec. 2023 was $5,841 Mil.
Lear's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.30.
Lear's Inventory-to-Revenue for the quarter that ended in Dec. 2023
increased
from Sep. 2023 (0.30) to Sep. 2023 (0.30)
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
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 Turnover measures how fast the company turns over its inventory within a year.
Lear's Inventory Turnover for the quarter that ended in Dec. 2023 was 3.07.
Lear Inventory-to-Revenue Historical Data
The historical data trend for Lear's Inventory-to-Revenue 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.
Competitive Comparison of Lear's Inventory-to-Revenue
For the Auto Parts subindustry, Lear's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lear's Inventory-to-Revenue Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Lear's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Lear's Inventory-to-Revenue falls into.
Lear Inventory-to-Revenue Calculation
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 fiscal year that ended in Dec. 2023 is calculated as
* 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.
Lear (NYSE:LEA) Inventory-to-Revenue Explanation
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
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:
* 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.
Lear Inventory-to-Revenue Related Terms
Thank you for viewing the detailed overview of Lear's Inventory-to-Revenue provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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