Lear Corporation (NYSE:LEA)

Can LEA survive covid19 ?
Here’s my hypothesis.
By looking at LEA’s financial statement:-
http://financials.morningstar.com/income-statement/is.html?t=LEA®ion=usa&culture=en-US&ownerCountry=USA

Lea needs to pay $667M operating expenses per year (salary, etc ….)

At the end of year 2019, LEA has cash $1.5B
http://financials.morningstar.com/cash-flow/cf.html?t=LEA®ion=usa&culture=en-US&ownerCountry=USA

Based on their announcement here,
https://www.marketscreener.com/LEAR-CORPORATION-13367/news/LEAR-CORP-Creation-of-a-Direct-Financial-Obligation-or-an-Obligation-under-an-Off-Balance-Sheet-Ar-30260154/
Lear is
Took a $1B loan (out of its available $1.75B revolving credit)
Suspend all stock dividend ($186M paid in 2019)
Suspend all share buyback ($385M spent in 2019)

With all the above info, LEAR has
cash-on-hand total equivalent of $2.5B ($1.5b in bank, and $1b from revolving credit)
Operating expenses $667M
Contractual obligation in 2020 $110M
Lease Obligation in 2020 $131M
(The Company has operating leases for production, office and warehouse facilities, manufacturing and office equipment and vehicles.)

So, in summary, I’d assume that LEAR has
$2.5B cash
~~ $1B obligation they need to spend in year 2020 (assuming they have ZERO income)

I think they can survive Covid19 !!!

Pabrai cannibal