L3Harris Technologies Inc (LHX)
Total asset 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 |
| Total assets | US$ in thousands | 41,687,000 | 33,524,000 | 34,709,000 | 36,960,000 | 10,117,000 |
| Total asset turnover | 0.45 | 0.50 | 0.51 | 0.48 | 0.66 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $18,876,000K ÷ $41,687,000K
= 0.45
The total asset turnover ratio measures how efficiently a company generates sales from its assets. For L3Harris Technologies Inc, the total asset turnover has been fluctuating over the past five years. In 2023, the ratio stood at 0.45, indicating that the company generated $0.45 in sales for every dollar of assets. This was a decrease from 2022 when the ratio was 0.50. Similarly, in 2021 and 2020, the total asset turnover was 0.51 and 0.48 respectively, showing a slight decrease over time.
The significant drop in total asset turnover from 0.66 in 2019 to 0.45 in 2023 indicates that the company may be facing challenges in efficiently utilizing its assets to generate revenue. This could be a cause for concern as it suggests that L3Harris Technologies Inc may not be effectively leveraging its assets to drive sales growth. Further analysis of the company's operational efficiency and asset management strategies may be necessary to address this declining trend in total asset turnover.
Peer comparison
Dec 31, 2023