L3Harris Technologies Inc (LHX)
Working capital turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 21,325,000 | 21,142,000 | 20,765,000 | 20,159,000 | 19,419,000 | 18,657,000 | 17,988,000 | 17,430,000 | 17,062,000 | 16,834,000 | 16,817,000 | 17,350,000 | 17,814,000 | 18,124,000 | 18,358,000 | 18,135,000 | 18,194,000 | 18,366,000 | 18,334,000 | 15,754,000 |
| Total current assets | US$ in thousands | 8,218,000 | 8,302,000 | 8,047,000 | 8,116,000 | 7,912,000 | 7,501,000 | 6,850,000 | 7,000,000 | 6,754,000 | 6,431,000 | 6,188,000 | 6,249,000 | 6,359,000 | 6,626,000 | 7,589,000 | 7,538,000 | 6,667,000 | 6,393,000 | 6,926,000 | 7,211,000 |
| Total current liabilities | US$ in thousands | 7,633,000 | 7,973,000 | 8,981,000 | 8,437,000 | 8,004,000 | 8,482,000 | 6,309,000 | 6,151,000 | 5,776,000 | 5,853,000 | 4,884,000 | 4,737,000 | 4,551,000 | 4,313,000 | 4,464,000 | 4,231,000 | 4,240,000 | 4,666,000 | 4,587,000 | 5,123,000 |
| Working capital turnover | 36.45 | 64.26 | — | — | — | — | 33.25 | 20.53 | 17.45 | 29.12 | 12.90 | 11.47 | 9.85 | 7.84 | 5.87 | 5.48 | 7.50 | 10.63 | 7.84 | 7.55 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $21,325,000K ÷ ($8,218,000K – $7,633,000K)
= 36.45
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover ratio indicates better efficiency in managing working capital.
Analyzing the working capital turnover of L3Harris Technologies Inc from March 2020 to December 2024, we observe fluctuations in the ratio over the period. The ratio started at 7.55 in March 2020 and increased gradually, reaching a peak of 64.26 in September 2024. This significant increase indicates a substantial improvement in the company's efficiency in utilizing its working capital to generate sales.
The company's working capital turnover ratio experienced fluctuations, with some periods showing lower ratios, such as 5.48 in March 2021, indicating temporary inefficiencies in working capital management. However, the ratio recovered and displayed a generally positive trend, demonstrating enhanced efficiency in utilizing working capital.
Overall, the trend in L3Harris Technologies Inc's working capital turnover ratio indicates an improvement in working capital management efficiency, with the company effectively utilizing its working capital to support revenue generation and operational activities.
Peer comparison
Dec 31, 2024