L3Harris Technologies Inc (LHX)
Working capital 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 current assets | US$ in thousands | 8,055,000 | 6,754,000 | 6,359,000 | 6,667,000 | 2,578,000 |
| Total current liabilities | US$ in thousands | 8,004,000 | 5,776,000 | 4,551,000 | 4,240,000 | 2,268,000 |
| Working capital turnover | 370.12 | 17.15 | 9.83 | 7.38 | 21.39 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,876,000K ÷ ($8,055,000K – $8,004,000K)
= 370.12
L3Harris Technologies Inc's working capital turnover has shown a strong improvement over the years, indicating efficiency in managing its working capital. The company's working capital turnover ratio has significantly increased from 7.38 in 2020 to 370.12 in 2023, reflecting a more efficient utilization of its current assets and liabilities to generate revenue. This suggests that the company is generating revenue at a much faster rate relative to its working capital investment. The significant jump in the working capital turnover ratio could be attributed to better inventory management, effective accounts receivable collection, and efficient payment of accounts payable. Overall, the upward trend in the working capital turnover ratio indicates improved operational efficiency and financial performance for L3Harris Technologies Inc.
Peer comparison
Dec 31, 2023