L3Harris Technologies Inc (LHX)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Jun 30, 2019
Revenue	US$ in thousands	18,876,000	16,777,000	17,769,000	17,913,000	6,632,000
Receivables	US$ in thousands	7,879,000	5,920,000	5,968,000	1,344,000	457,000
Receivables turnover		2.40	2.83	2.98	13.33	14.51

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $18,876,000K ÷ $7,879,000K
= 2.40

The receivables turnover ratio for L3Harris Technologies Inc has fluctuated over the past five years. The ratio indicates how efficiently the company is collecting its accounts receivable during a specific period. A higher turnover ratio generally suggests a more efficient collection process.

In 2023, the receivables turnover ratio decreased to 2.40 from 2.83 in 2022 and 2.98 in 2021. This decrease may indicate a slower collection of accounts receivable during the period. It is essential to investigate the reasons behind this decline to understand if there are issues with credit policies, customer payment behaviors, or internal operational inefficiencies impacting the collection process.

Comparing recent data to earlier years, the sharp decrease from 13.33 in 2020 and 14.51 in 2019 stands out as particularly significant. This may suggest a notable shift in the company's receivables management practices. Further analysis and context-specific information would be required to determine the underlying causes of such a significant change within this timeframe.

Overall, the trend in L3Harris Technologies Inc's receivables turnover ratio signals fluctuations in the efficiency of accounts receivable collection. Further investigation into the company's credit and collection policies, customer relationships, and overall business operations may provide valuable insights into the factors influencing this metric.