L3Harris Technologies Inc (LHX)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 21,325,000 | 19,419,000 | 17,062,000 | 17,814,000 | 18,194,000 |
| Total assets | US$ in thousands | 42,001,000 | 41,687,000 | 33,524,000 | 34,709,000 | 36,960,000 |
| Total asset turnover | 0.51 | 0.47 | 0.51 | 0.51 | 0.49 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $21,325,000K ÷ $42,001,000K
= 0.51
Total asset turnover measures the efficiency of a company in generating sales revenue from its total assets.
For L3Harris Technologies Inc, the total asset turnover ratio has shown a slightly increasing trend over the years. In 2020, the ratio was 0.49, indicating that the company generated $0.49 in revenue for every dollar of total assets.
In 2021, 2022, and 2024, the total asset turnover ratio improved to 0.51, suggesting that L3Harris Technologies became more efficient in utilizing its assets to generate revenue. However, in 2023, the ratio decreased to 0.47, which could possibly indicate lower sales relative to the total asset base during that year.
Overall, the increasing trend in total asset turnover signifies that L3Harris Technologies has been able to improve its asset utilization efficiency, resulting in better revenue generation per dollar of assets invested.
Peer comparison
Dec 31, 2024