L3Harris Technologies Inc (LHX)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 15,801,000 | 14,306,000 | 12,135,000 | 12,438,000 | 12,886,000 |
| Inventory | US$ in thousands | 1,330,000 | 1,472,000 | 1,291,000 | 982,000 | 973,000 |
| Inventory turnover | 11.88 | 9.72 | 9.40 | 12.67 | 13.24 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $15,801,000K ÷ $1,330,000K
= 11.88
The inventory turnover ratio for L3Harris Technologies Inc has exhibited fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio decreased from 13.24 in 2020 to 12.67 in 2021, indicating a slight decrease in the efficiency of inventory management. Subsequently, there was a more pronounced decline to 9.40 in 2022, which suggests that the company took longer to sell its inventory compared to the previous year.
However, there was a slight improvement in inventory turnover in 2023, as the ratio increased to 9.72. This indicates that L3Harris Technologies Inc was able to sell its inventory more efficiently during that period. The ratio further improved to 11.88 in 2024, signaling a more favorable trend in inventory management efficiency.
Overall, while there have been fluctuations in inventory turnover for L3Harris Technologies Inc, the general trend indicates some variability in the company's ability to efficiently manage its inventory levels and turnover. The management should continue to monitor and optimize inventory levels to ensure optimal utilization of resources and improved operational performance.
Peer comparison
Dec 31, 2024