L3Harris Technologies Inc (LHX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 560,000 | 880,000 | 941,000 | 1,276,000 | 530,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 8,004,000 | 5,776,000 | 4,551,000 | 4,240,000 | 2,268,000 |
| Cash ratio | 0.07 | 0.15 | 0.21 | 0.30 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($560,000K
+ $—K)
÷ $8,004,000K
= 0.07
The cash ratio of L3Harris Technologies Inc has shown a decreasing trend over the past five years, from 0.23 as of June 30, 2019, to 0.07 as of December 31, 2023. This indicates that the company's ability to cover its short-term liabilities with its available cash and cash equivalents has weakened over this period.
A cash ratio of 0.07 as of December 31, 2023, implies that for every dollar of current liabilities, L3Harris Technologies Inc only has $0.07 in cash and cash equivalents readily available. This may indicate a potential liquidity risk, as the company may face challenges in meeting its short-term obligations using its cash reserves alone.
It is important for investors and stakeholders to monitor the cash ratio closely, as significant fluctuations in this ratio can provide insights into the company's liquidity position and its ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2023