L3Harris Technologies Inc (LHX)
Working capital turnover
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 20,623,000 | 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 |
| Total current assets | US$ in thousands | 8,302,000 | 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 |
| Total current liabilities | US$ in thousands | 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 | 4,718,000 |
| Working capital turnover | 62.68 | — | — | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $20,623,000K ÷ ($8,302,000K – $7,973,000K)
= 62.68
The working capital turnover ratio for L3Harris Technologies Inc has shown fluctuating trends over the past few years, indicating variations in how efficiently the company is utilizing its working capital to generate sales revenue.
The ratio was highest in December 2023 at 370.63, suggesting that for that period, the company generated $370.63 in sales revenue for every dollar of working capital invested. This spike indicates a highly efficient use of working capital to drive sales.
In general, a higher working capital turnover ratio is desirable as it signifies that the company is efficiently managing its working capital to support revenue generation. On the other hand, lower ratios indicate a less efficient utilization of working capital relative to sales.
Overall, analyzing the working capital turnover ratio over time can provide insights into the company's operational efficiency and financial health, highlighting periods of strong performance and areas for potential improvement.
Peer comparison
Sep 30, 2024