L3Harris Technologies Inc (LHX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 18,876,000 | 16,777,000 | 17,769,000 | 17,913,000 | 6,632,000 |
| Property, plant and equipment | US$ in thousands | 2,644,000 | 1,949,000 | 1,947,000 | 2,102,000 | 894,000 |
| Fixed asset turnover | 7.14 | 8.61 | 9.13 | 8.52 | 7.42 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,876,000K ÷ $2,644,000K
= 7.14
The fixed asset turnover ratio for L3Harris Technologies Inc has exhibited a declining trend over the past five years, from 7.42 in June 2019 to 7.14 in December 2023. This decreasing trend indicates that the company is generating less revenue from its fixed assets over time. However, it is worth noting that the ratio still remains relatively high, suggesting that the company is efficiently utilizing its fixed assets to generate sales. Overall, while the decreasing trend may raise concerns, the company's ability to generate revenue from its fixed assets is still robust compared to the industry average.
Peer comparison
Dec 31, 2023