L3Harris Technologies Inc (LHX)
Payables turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 20,206,000 | 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 |
| Payables | US$ in thousands | 2,049,000 | 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 |
| Payables turnover | 9.86 | 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 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $20,206,000K ÷ $2,049,000K
= 9.86
The payables turnover ratio for L3Harris Technologies Inc has exhibited fluctuations over the periods presented. The ratio indicates the efficiency with which the company pays off its suppliers. Higher ratios generally imply that the company is managing its payables effectively and settling its obligations promptly.
Looking at the trend over the past few quarters, the payables turnover ratio has shown an overall increasing pattern. This suggests that the company has been improving its efficiency in paying its suppliers. The ratio peaked at 22.04 in March 2021, indicating a significant improvement in the company's payables management during that period.
It is worth noting that the payables turnover ratio saw a sharp decline in the following quarters, dropping to 5.24 in September 2019. This substantial decrease may require further investigation to understand the underlying reasons for the sharp drop in payables turnover during that specific period.
Overall, the increasing trend in the payables turnover ratio for L3Harris Technologies Inc is a positive indication of the company's ability to manage its accounts payable effectively and maintain good relationships with its suppliers.
Peer comparison
Sep 30, 2024