L3Harris Technologies Inc (LHX)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	19,843,000	19,283,000	18,412,000	17,723,000	17,735,000	17,071,000	16,609,000	16,819,000	15,912,000	16,472,000	16,875,000	29,521,000	30,127,000	30,261,000	30,693,000	17,047,000	14,300,000	10,951,000	7,463,000	4,955,000
Inventory	US$ in thousands	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	1,339,000	360,000
Inventory turnover		13.86	13.06	12.51	10.82	11.41	11.08	12.87	12.56	12.82	15.11	17.18	28.83	34.55	33.47	31.54	19.07	16.65	11.06	5.57	13.76

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,843,000K ÷ $1,432,000K
= 13.86

The inventory turnover ratio for L3Harris Technologies Inc has shown fluctuations over the past few quarters. The ratio indicates how many times a company's inventory is sold and replaced during a specific period. A higher inventory turnover ratio generally implies that a company is managing its inventory efficiently.

From September 2019 to March 2020, the inventory turnover ratio increased steadily from 5.57 to 31.54, indicating an improvement in inventory management. However, there was a significant spike in the ratio in the last quarter of 2020, reaching 33.47, which might suggest a possible inventory liquidation scenario or rapid sales within a short period.

In the following quarters, the inventory turnover ratio remained relatively high, consistently above 10, indicating strong sales relative to the average level of inventory held. The lowest ratio during this period was 10.82 in September 2023.

Overall, the inventory turnover ratios for L3Harris Technologies Inc have demonstrated efficient management of inventory levels and successful sales performance, with some fluctuations over time.