L3Harris Technologies Inc (LHX)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 16.33 16.19 2.40 2.13 2.73 2.70 2.83 2.80 — — 2.98 — — 16.27 13.33 15.90 13.38 9.91 7.63 14.51
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
Working capital turnover — — 370.63 — 32.64 20.16 17.16 28.70 12.73 11.45 9.83 7.79 5.84 5.39 7.38 10.38 6.57 6.07 4.21 21.40

L3Harris Technologies Inc's inventory turnover has been relatively stable over the past two years, ranging from 10.82 to 17.18 times. This indicates that the company is managing its inventory efficiently, with higher turnover ratios implying faster sales of inventory.

The receivables turnover fluctuates significantly, with a peak of 16.33 and a low of 2.13 in the same year. This variability may indicate changes in the company's credit policies or the efficiency of its accounts receivable management.

The payables turnover also shows some fluctuation, ranging from 5.24 to 22.04, suggesting varying payment terms with suppliers. A higher turnover ratio may imply that the company is paying its suppliers more quickly.

The working capital turnover is quite inconsistent, with a high of 370.63 in one period. This ratio indicates how efficiently the company is using its working capital to generate sales. The fluctuation in this ratio could be due to changes in the company's sales or working capital management practices.

Overall, while L3Harris Technologies Inc's activity ratios show some variability, the company appears to be effectively managing its inventory and working capital turnover. Monitoring these ratios over time can provide insights into the company's operational efficiency and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 26.34 27.94 29.18 33.73 32.00 32.95 28.37 29.06 28.47 24.15 21.24 12.66 10.56 10.90 11.57 19.14 21.93 33.00 65.49 26.52
Days of sales outstanding (DSO) days 22.35 22.55 152.14 171.13 133.65 135.16 128.76 130.23 — — 122.59 — — 22.43 27.39 22.96 27.28 36.83 47.84 25.15
Number of days of payables days 34.88 39.98 41.75 43.50 41.76 43.92 42.74 45.10 39.48 38.18 38.22 19.88 17.03 16.56 16.72 25.84 27.92 47.40 69.60 38.67

L3Harris Technologies Inc's activity ratios provide insights into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH): The trend in DOH shows a fluctuating pattern over the periods analyzed. In recent quarters, the company has managed to reduce its inventory holding period, indicating better inventory management efficiency. However, there was a significant increase in DOH in the past, indicating potential issues with inventory control.

2. Days of Sales Outstanding (DSO): DSO has also shown variability over the periods, with some quarters displaying a high number of days outstanding, suggesting slower collection of accounts receivable. Notably, in one period, no data was available, which could indicate reporting issues. Efforts to reduce DSO can help in improving cash flow and liquidity.

3. Number of Days of Payables: The days of payables have been relatively stable, with occasional fluctuations. The company appears to have effectively managed its payables period, maintaining a balance between managing working capital and maintaining good supplier relationships. A lower number of days of payables might indicate aggressive payment policies.

Overall, L3Harris Technologies Inc should continue to monitor and improve these activity ratios to optimize working capital efficiency and enhance overall financial performance.

Long-term

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
Fixed asset turnover 7.17 6.90 7.15 6.47 8.08 8.02 8.61 7.93 8.13 8.33 9.13 8.82 9.00 8.35 8.52 8.76 7.62 6.23 4.69 7.42
Total asset turnover 0.48 0.47 0.45 0.43 0.50 0.48 0.50 0.50 0.49 0.50 0.51 0.51 0.51 0.49 0.48 0.48 0.41 0.33 0.25 0.66

L3Harris Technologies Inc's fixed asset turnover ratio has fluctuated over the past few quarters, ranging from 6.47 to 9.13. This ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets. The higher the fixed asset turnover, the better the company is utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also varied, ranging from 0.33 to 0.66. This ratio measures how efficiently the company is using all its assets to generate sales. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets.

Overall, the trends in both fixed asset turnover and total asset turnover ratios for L3Harris Technologies Inc suggest that the company has been able to effectively utilize its assets to generate revenue over the observed periods. However, it is important to continue monitoring these ratios to ensure sustained efficiency in asset utilization and revenue generation.