L3Harris Technologies Inc (LHX)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 36.45 | 64.26 | — | — | — | — | 33.25 | 20.53 | 17.45 | 29.12 | 12.90 | 11.47 | 9.85 | 7.84 | 5.87 | 5.48 | 7.50 | 10.63 | 7.84 | 7.55 |
L3Harris Technologies Inc's Inventory turnover ratio has fluctuated over the years, ranging from a high of 15.37 in June 2020 to a low of 8.16 in March 2023. The ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a given period.
The Receivables turnover ratio data is not available, which makes it difficult to assess how quickly the company collects its accounts receivable. A higher ratio would indicate that the company is efficient in collecting payments from its customers.
Similarly, the Payables turnover ratio data is unavailable, making it challenging to evaluate how quickly the company pays its suppliers. A higher ratio would suggest that the company is managing its payables effectively.
The Working capital turnover ratio has shown significant variability, with a notable increase from 7.55 in March 2020 to 64.26 in September 2024. This ratio reflects how efficiently the company generates revenue from its working capital. The increasing trend indicates a potential improvement in the company's operational efficiency and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.98 | 31.91 | 33.22 | 35.73 | 37.51 | 43.62 | 43.16 | 44.71 | 38.83 | 41.17 | 38.58 | 32.92 | 28.82 | 29.56 | 24.72 | 25.78 | 27.56 | 24.89 | 23.75 | 32.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios for L3Harris Technologies Inc can provide insights into how efficiently the company manages its operational resources:
1. Days of Inventory on Hand (DOH):
- L3Harris Technologies Inc's DOH shows the average number of days it takes for the company to sell its inventory.
- The trend in DOH over the periods indicates changes in inventory management. A decreasing trend in DOH from 2020 to 2021 suggests the company was able to sell inventory more quickly. However, there was an increase in DOH from 2022 to 2024, indicating a possible buildup of inventory.
- The company should ensure effective inventory management to prevent excessive carrying costs and obsolescence issues.
2. Days of Sales Outstanding (DSO):
- The DSO ratio measures the average number of days it takes for L3Harris Technologies Inc to collect outstanding receivables.
- The absence of DSO data suggests that data on accounts receivable and sales were not provided or calculated. This makes it challenging to assess the efficiency of the company's credit policies and collections processes.
3. Number of Days of Payables:
- The number of days of payables ratio shows the average number of days L3Harris Technologies Inc takes to pay its suppliers.
- Similar to DSO, the lack of data on payables makes it difficult to evaluate the company's payment practices and liquidity management.
- Monitoring payables turnover and managing payment terms effectively can help improve cash flow and relationships with suppliers.
In conclusion, while the analysis of the DOH ratios provides some insights into the company's inventory management efficiency, the absence of DSO and payables data limits a comprehensive evaluation of L3Harris Technologies Inc's overall activity performance and liquidity management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 5.22 | 6.18 | 6.03 | 5.97 | 5.90 | 6.00 | 6.08 | 6.21 | 6.40 | 6.81 | 6.21 | 8.66 | 6.28 | 9.10 | 7.75 |
| Total asset turnover | 0.51 | 0.50 | 0.50 | 0.48 | 0.47 | 0.44 | 0.51 | 0.49 | 0.51 | 0.50 | 0.49 | 0.50 | 0.51 | 0.52 | 0.51 | 0.50 | 0.49 | 0.49 | 0.48 | 0.41 |
The fixed asset turnover ratio for L3Harris Technologies Inc has shown some fluctuation over the past few years, ranging from a high of 9.10 in June 2020 to a low of 5.22 in September 2023. This ratio measures how efficiently the company is using its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio, which indicates how efficiently the company is using all its assets to generate revenue, has been relatively stable, hovering around 0.50 for most of the periods analyzed. This suggests that L3Harris is maintaining a consistent level of efficiency in generating sales relative to its total assets.
Overall, while the fixed asset turnover ratio has shown more variability, the total asset turnover ratio suggests a steady level of efficiency in generating revenue relative to the company's total assets. This could indicate that L3Harris is effectively managing its assets to drive sales growth over the analyzed periods.