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.
Peer comparison
Dec 31, 2023