L3Harris Technologies Inc (LHX)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	16,192,000	16,001,000	15,736,000	15,079,000	14,324,000	13,705,000	13,149,000	12,580,000	12,135,000	11,872,000	11,741,000	12,085,000	12,438,000	12,646,000	12,877,000	12,801,000	12,886,000	13,109,000	13,199,000	11,247,000
Inventory	US$ in thousands	1,330,000	1,399,000	1,432,000	1,476,000	1,472,000	1,638,000	1,555,000	1,541,000	1,291,000	1,339,000	1,241,000	1,090,000	982,000	1,024,000	872,000	904,000	973,000	894,000	859,000	990,000
Inventory turnover		12.17	11.44	10.99	10.22	9.73	8.37	8.46	8.16	9.40	8.87	9.46	11.09	12.67	12.35	14.77	14.16	13.24	14.66	15.37	11.36

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $16,192,000K ÷ $1,330,000K
= 12.17

The inventory turnover ratio for L3Harris Technologies Inc has shown fluctuations over the past few years, indicating changes in the efficiency of managing its inventory.

In March 2020, the inventory turnover ratio stood at 11.36, which means the company's inventory turned over approximately 11.36 times during the year. The ratio increased steadily to a peak of 15.37 in June 2020, reflecting an improvement in inventory management efficiency.

Despite some fluctuations, the inventory turnover ratio generally remained above 10, indicating that L3Harris was effectively managing its inventory levels. However, the ratio started to decline from June 2022 onwards, dropping to 8.87 by September 2022. This may suggest potential issues such as overstocking or slowing sales.

By December 2024, the inventory turnover ratio had increased to 12.17, showing a slight improvement in inventory management efficiency. Overall, the trend in inventory turnover for L3Harris Technologies Inc indicates some variability but generally suggests effective inventory management practices being implemented within the company.