L3Harris Technologies Inc (LHX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 615,000 | 560,000 | 880,000 | 941,000 | 1,276,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,633,000 | 8,004,000 | 5,776,000 | 4,551,000 | 4,240,000 |
| Cash ratio | 0.08 | 0.07 | 0.15 | 0.21 | 0.30 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($615,000K
+ $—K)
÷ $7,633,000K
= 0.08
The cash ratio of L3Harris Technologies Inc has shown a decline over the years, decreasing from 0.30 in December 31, 2020, to 0.08 by December 31, 2024. This indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has weakened over this period. A cash ratio of less than 1 suggests that the company may not have enough liquid assets to meet its short-term obligations. It is important for the company to monitor this trend and ensure that its liquidity position remains strong to meet its financial obligations and operational needs in the future.
Peer comparison
Dec 31, 2024