L3Harris Technologies Inc (LHX)
Payables 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 |
| Payables | US$ in thousands | 2,106,000 | 1,945,000 | 1,767,000 | 1,406,000 | 525,000 |
| Payables turnover | 8.74 | 8.38 | 9.46 | 12.57 | 8.89 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $18,412,000K ÷ $2,106,000K
= 8.74
The payables turnover ratio for L3Harris Technologies Inc has shown fluctuations over the five-year period analyzed. The ratio indicates how efficiently the company is managing its trade payables by measuring the number of times the company pays its suppliers within a given period.
In 2023, the payables turnover ratio was 8.74, implying that the company paid its suppliers approximately 8.74 times during the year. This is a slight increase from 2022 when the ratio was 8.38. The improvement suggests that the company may be managing its trade payables more effectively compared to the previous year.
However, when comparing the 2023 ratio to 2021 and 2020, where the ratios were 9.46 and 12.57 respectively, there appears to be a decline in the efficiency of payables management. A lower ratio could indicate that the company is taking longer to pay its suppliers, potentially affecting supplier relationships or cash flow management.
In 2019, the payables turnover ratio was 8.89, showing a comparable level of efficiency to 2023. Overall, the trend in payables turnover for L3Harris Technologies Inc suggests some variability in how promptly the company is settling its payables over the years, warranting further investigation into the underlying reasons for these fluctuations.
Peer comparison
Dec 31, 2023