L3Harris Technologies Inc (LHX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 20,623,000 | 20,087,000 | 19,568,000 | 18,902,000 | 18,236,000 | 17,656,000 | 17,116,000 | 16,782,000 | 16,590,000 | 16,603,000 | 17,318,000 | 17,769,000 | 18,027,000 | 18,239,000 | 17,836,000 | 17,910,000 | 17,934,000 | 15,359,000 | 12,664,000 | 9,727,000 |
| Receivables | US$ in thousands | 1,371,000 | 1,230,000 | 1,209,000 | 7,879,000 | 8,550,000 | 6,465,000 | 6,338,000 | 5,920,000 | 5,919,000 | — | — | 5,968,000 | — | — | 1,096,000 | 1,344,000 | 1,128,000 | 1,148,000 | 1,278,000 | 1,275,000 |
| 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 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $20,623,000K ÷ $1,371,000K
= 15.04
The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales during a specific period. A higher turnover ratio indicates a faster collection of accounts receivable, which is generally seen as favorable.
Looking at the historical data for L3Harris Technologies Inc, we observed fluctuations in the receivables turnover ratio over the past few quarters. For example, in the latest quarter ending September 30, 2024, the receivables turnover ratio was 15.04, showing an improvement compared to the previous quarter.
However, the ratio experienced a significant decline in the quarter ending December 31, 2023, with a ratio of 2.40, indicating a slower collection of receivables during that period. This could be a red flag, signaling potential issues with credit management or changes in customer payment behavior.
It's essential to note the significant improvement in the receivables turnover ratio from the fourth quarter of 2021 to the first quarter of 2022, with a ratio of 16.27 to 2.98, respectively. This sharp decline followed by an increase could be due to seasonality, changes in sales volume, or alterations in the company's credit policies.
Overall, a consistently high and increasing receivables turnover ratio is favorable, as it suggests that L3Harris Technologies Inc is efficiently managing its accounts receivable and collecting outstanding payments promptly. However, fluctuations in the ratio should be further analyzed to understand the underlying reasons and potential implications for the company's financial performance.
Peer comparison
Sep 30, 2024