L3Harris Technologies Inc (LHX)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Jun 30, 2019
Cost of revenue	US$ in thousands	18,412,000	16,297,000	16,710,000	17,680,000	4,668,000
Inventory	US$ in thousands	1,472,000	1,291,000	982,000	973,000	360,000
Inventory turnover		12.51	12.62	17.02	18.17	12.97

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $18,412,000K ÷ $1,472,000K
= 12.51

L3Harris Technologies Inc's inventory turnover has shown a decreasing trend over the past five years, decreasing from 18.17 in December 31, 2020, to 12.51 in December 31, 2023. This indicates that the company is selling its inventory less frequently in recent years. A higher inventory turnover ratio is generally preferred as it suggests that the company is efficiently managing its inventory and turning it into sales quickly. The decreasing trend may imply potential issues such as overstocking, slowing sales, or inefficient inventory management practices. Further analysis and scrutiny of the company's inventory management processes are advisable to identify areas for improvement and optimize inventory turnover efficiency.