L3Harris Technologies Inc (LHX)
Working capital turnover
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 6,633,000 |
| Total current assets | US$ in thousands | 8,047,000 | 8,266,000 | 8,055,000 | 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 | 7,027,000 | 2,578,000 |
| Total current liabilities | US$ in thousands | 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 | 4,718,000 | 2,268,000 |
| Working capital turnover | — | — | 370.63 | — | 32.64 | 20.16 | 17.16 | 28.70 | 12.73 | 11.45 | 9.83 | 7.79 | 5.84 | 5.39 | 7.38 | 10.38 | 6.57 | 6.07 | 4.21 | 21.40 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $20,087,000K ÷ ($8,047,000K – $8,981,000K)
= —
The working capital turnover ratio for L3Harris Technologies Inc has fluctuated over the past several quarters. The ratio measures how efficiently the company is using its working capital to generate sales revenue.
In the most recent quarter, the working capital turnover was not available or not applicable. However, looking at the trend over the last few quarters, there has been a general increase in the ratio from 4.21 in March 2020 to a peak of 370.63 in December 2023. This significant increase may indicate improvements in the company's working capital management efficiency.
It's worth noting that the working capital turnover ratio dipped in the following quarter after reaching its peak in December 2023, suggesting a temporary decline in efficiency in utilizing working capital to generate revenue. However, the overall trend seems positive, with the ratio showing an upward trajectory.
A high working capital turnover ratio signifies that the company is efficiently using its current assets to support sales growth. Conversely, a low ratio indicates that the company may be inefficiently managing its working capital.
In conclusion, L3Harris Technologies Inc has shown improvements in working capital turnover over the analyzed periods, indicating increased efficiency in utilizing its working capital to generate revenue. However, it would be important to continue monitoring this ratio to ensure sustained efficiency in the company's working capital management.
Peer comparison
Jun 30, 2024