L3Harris Technologies Inc (LHX)
Fixed asset turnover
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 20,087,000 | 19,568,000 | 18,902,000 | 18,236,000 | 17,656,000 | 17,116,000 | 16,782,000 | 16,590,000 | 16,603,000 | 17,318,000 | 17,769,000 | 18,027,000 | 18,239,000 | 17,836,000 | 17,910,000 | 17,934,000 | 15,359,000 | 12,664,000 | 9,727,000 | 6,633,000 |
| Property, plant and equipment | US$ in thousands | 2,800,000 | 2,836,000 | 2,644,000 | 2,818,000 | 2,186,000 | 2,133,000 | 1,949,000 | 2,092,000 | 2,042,000 | 2,078,000 | 1,947,000 | 2,044,000 | 2,026,000 | 2,136,000 | 2,102,000 | 2,047,000 | 2,015,000 | 2,032,000 | 2,073,000 | 894,000 |
| Fixed asset turnover | 7.17 | 6.90 | 7.15 | 6.47 | 8.08 | 8.02 | 8.61 | 7.93 | 8.13 | 8.33 | 9.13 | 8.82 | 9.00 | 8.35 | 8.52 | 8.76 | 7.62 | 6.23 | 4.69 | 7.42 |
June 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $20,087,000K ÷ $2,800,000K
= 7.17
The fixed asset turnover ratio for L3Harris Technologies Inc has been relatively stable over the past few quarters, ranging between 6.23 and 9.13. This ratio measures how efficiently the company is generating sales revenue from its investments in fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
In analyzing the trend, we can see that the fixed asset turnover ratio peaked at 9.13 in the first quarter of 2022 before gradually declining to 6.47 in the third quarter of the same year, and then recovering to 7.17 in the most recent quarter. This fluctuation could suggest changes in the company's operations or capital expenditures during these periods.
Overall, the company's fixed asset turnover indicates that L3Harris is efficiently utilizing its fixed assets to generate revenue, albeit with some variability over the quarters. This ratio is crucial for assessing the company's operational efficiency and asset management strategies.
Peer comparison
Jun 30, 2024