L3Harris Technologies Inc (LHX)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 14.44 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
Receivables turnover 15.04 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
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
Working capital turnover 62.68 — — 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

L3Harris Technologies Inc's activity ratios provide insight into its efficiency in managing inventory, receivables, payables, and working capital.

- The inventory turnover ratio has been relatively stable over the analyzed periods, averaging around 12 to 14 times. This indicates that the company is effectively selling and replenishing its inventory within a reasonable timeframe.

- The receivables turnover ratio shows a fluctuating trend, with significant variations in some periods. In particular, the sharp decline in December 2023 and the subsequent increase could indicate changes in the company's credit policies or customer payment behavior.

- The payables turnover ratio has been consistent, ranging from 8 to 10 times, implying that L3Harris Technologies Inc efficiently manages its accounts payable by settling supplier obligations multiple times a year.

- The working capital turnover ratio has varied considerably, with some periods showing high turnover while others significantly lower. This ratio highlights how effectively the company is utilizing its working capital to generate sales revenue.

Overall, L3Harris Technologies Inc's activity ratios suggest a generally efficient management of inventory, receivables, payables, and working capital, with fluctuations in certain periods that may require further investigation to understand underlying operational changes.

Average number of days

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
Days of inventory on hand (DOH) days 25.27 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
Days of sales outstanding (DSO) days 24.26 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
Number of days of payables days 37.01 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

The Days of Inventory on Hand (DOH) ratio for L3Harris Technologies Inc has shown a decreasing trend over the past few quarters, indicating the company is managing its inventory more efficiently. As of the latest observation in September 2024, the company held inventory for approximately 25.27 days on average.

In contrast, the Days of Sales Outstanding (DSO) ratio has displayed fluctuations over the same period, with a significant spike in December 2023 to 152.14 days, which suggests delayed collections from customers. However, the ratio improved in the subsequent quarters, with the latest figure in September 2024 at 24.26 days, indicating a reduction in the average collection period.

The Number of Days of Payables ratio reflects the number of days it takes for the company to pay its suppliers. L3Harris Technologies Inc has maintained a relatively stable payment period to suppliers, with the latest observation in September 2024 showing a figure of 37.01 days.

Overall, the activity ratios suggest that the company is effectively managing its inventory levels, improving its collection process, and maintaining consistent payment terms with suppliers. Efforts to optimize these ratios indicate a focus on enhancing operational efficiency and liquidity management. Further monitoring of these ratios will be essential to track the company's performance in managing its working capital effectively.

Long-term

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
Fixed asset turnover 7.38 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
Total asset turnover 0.49 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

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales.

Fixed asset turnover ratio for L3Harris Technologies Inc has been relatively stable over the past several quarters, ranging from 6.47 to 9.13. This indicates that the company is generating sales efficiently from its fixed assets, with a higher ratio suggesting better utilization of fixed assets to generate revenue.

Total asset turnover ratio for L3Harris Technologies Inc has been around 0.45 to 0.51 in recent quarters. This ratio shows how effectively the company is generating sales from its total assets. A higher ratio implies better asset utilization in generating sales.

Overall, the company has maintained stable activity ratios, which is a positive sign indicating efficient management of assets to drive sales growth. However, it would be useful to compare these ratios with industry benchmarks to get a clearer picture of the company's performance relative to its peers.