L3Harris Technologies Inc (LHX)
Payables 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 |
| Payables | US$ in thousands | 1,896,000 | 2,112,000 | 2,106,000 | 2,112,000 | 2,029,000 | 2,054,000 | 1,945,000 | 2,078,000 | 1,721,000 | 1,723,000 | 1,767,000 | 1,608,000 | 1,406,000 | 1,373,000 | 1,406,000 | 1,207,000 | 1,094,000 | 1,422,000 | 1,423,000 | 525,000 |
| Payables turnover | 10.47 | 9.13 | 8.74 | 8.39 | 8.74 | 8.31 | 8.54 | 8.09 | 9.25 | 9.56 | 9.55 | 18.36 | 21.43 | 22.04 | 21.83 | 14.12 | 13.07 | 7.70 | 5.24 | 9.44 |
June 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,843,000K ÷ $1,896,000K
= 10.47
The payables turnover ratio for L3Harris Technologies Inc has exhibited fluctuations over the periods indicated. The ratio measures how efficiently the company pays off its suppliers by comparing the cost of goods sold to average accounts payable.
From September 2019 to September 2020, the payables turnover ratio ranged from 5.24 to 14.12, indicating an improvement in the company's ability to manage its payables. Subsequently, there was a significant increase in the ratio from December 2020 to March 2021, peaking at 22.04, which could be indicative of a more efficient payable management process during this period.
However, the ratio declined in the following quarters, reaching its lowest point in June 2022 at 8.09. From September 2022 onwards, there was a gradual improvement in the payables turnover ratio, with values ranging from 8.09 to 10.47 as of June 2024. This suggests the company has been relatively consistent in managing its payables efficiency over recent reporting periods.
It's important to note that a higher payables turnover ratio generally indicates that the company is paying its suppliers more quickly, which can sometimes strain relationships or impact the company's ability to negotiate favorable terms. On the other hand, a lower ratio may suggest a longer payment period, potentially benefiting the company through improved cash flow management. Overall, a balanced approach to managing payables is necessary to ensure financial stability and positive supplier relationships.
Peer comparison
Jun 30, 2024