Lear (LTS:0JTQ) ROCE % : 8.48% (As of Dec. 2024)

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What is Lear ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Lear's annualized ROCE % for the quarter that ended in Dec. 2024 was 8.48%.

Lear ROCE % Historical Data

The historical data trend for Lear's ROCE % 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 ROCE % Chart

Lear Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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4.94

8.08

7.08

9.98

9.53

Lear Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															8.99	8.15	11.39	9.76	8.48

Lear ROCE % Calculation

Lear's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	839.1	/	( ( (14695.5 - 5667.2)	+	(14027.5 - 5447) )	/ 2 )
	=	839.1	/	( (9028.3	+	8580.5)	/ 2 )
	=	839.1	/	8804.4
	=	9.53 %

Lear's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	742.4	/	( ( (14818.1 - 5892.7)	+	(14027.5 - 5447) )	/ 2 )
	=	742.4	/	( ( 8925.4	+	8580.5 )	/ 2 )
	=	742.4	/	8752.95
	=	8.48 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Lear (LTS:0JTQ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Lear ROCE % Related Terms

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Lear Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Lear Corp (LTS:0JTQ) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

LEA:USA LEA:Mexico

Address

21557 Telegraph Road, Southfield, MI, USA, 48033

Website

https://www.lear.com

Lear Corp designs, develops, and manufactures automotive seating and electrical systems and components. The company has two reporting segments Seating and E-Systems. 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. The company earns most of its revenue from the seating segment.

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