L3Harris Technologies Inc (LHX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	25.27	26.34	27.94	29.18	33.73	32.00	32.95	28.37	29.06	28.47	24.15	21.24	12.66	10.56	10.90	11.57	19.14	21.93	33.00	65.49
Days of sales outstanding (DSO)	days	24.26	22.35	22.55	152.14	171.13	133.65	135.16	128.76	130.23	—	—	122.59	—	—	22.43	27.39	22.96	27.28	36.83	47.84
Number of days of payables	days	37.01	34.88	39.98	41.75	43.50	41.76	43.92	42.74	45.10	39.48	38.18	38.22	19.88	17.03	16.56	16.72	25.84	27.92	47.40	69.60
Cash conversion cycle	days	12.52	13.82	10.51	139.58	161.37	123.89	124.19	114.38	114.19	-11.01	-14.03	105.61	-7.22	-6.47	16.77	22.24	16.26	21.28	22.44	43.74

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 25.27 + 24.26 – 37.01
= 12.52

The cash conversion cycle of L3Harris Technologies Inc shows fluctuations over the past dates as follows:

- The cash conversion cycle was 12.52 days as of September 30, 2024, indicating that the company takes approximately 12.52 days to convert its investments in inventory and other resources into cash from sales.

- In June 2024, the cycle increased to 13.82 days, suggesting a slight delay in the conversion process compared to the previous quarter.

- The cycle decreased to 10.51 days as of March 31, 2024, showing a more efficient conversion of resources into cash during that period.

- December 31, 2023, recorded a significantly longer cash conversion cycle of 139.58 days, indicating a prolonged period in converting resources into cash, possibly due to operational or financial challenges.

- September 30, 2023, and June 30, 2023, both experienced extended cash conversion cycles of 161.37 days and 123.89 days, respectively, further signifying challenges in managing cash flow and liquidity during those periods.

- The cycle improved to -11.01 days as of June 30, 2022, and March 31, 2022, indicating negative cash conversion cycles, which suggest that the company might be efficiently converting investments into cash or facing challenges related to managing payables and receivables.

- December 31, 2021, and September 30, 2021, showed positive cash conversion cycles of 105.61 days and 7.22 days, respectively, indicating a need for potential improvements in managing working capital during those periods.

- The cycle was -6.47 days as of June 30, 2021, and March 31, 2021, indicating negative cycles and potential efficient cash management during those quarters.

Overall, the cash conversion cycle of L3Harris Technologies Inc has varied significantly over the periods analyzed, reflecting fluctuations in working capital management efficiency, cash flow dynamics, and operational performance.