L3Harris Technologies Inc (LHX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,055,000 | 6,754,000 | 6,359,000 | 6,667,000 | 2,578,000 |
| Total current liabilities | US$ in thousands | 8,004,000 | 5,776,000 | 4,551,000 | 4,240,000 | 2,268,000 |
| Current ratio | 1.01 | 1.17 | 1.40 | 1.57 | 1.14 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,055,000K ÷ $8,004,000K
= 1.01
The current ratio of L3Harris Technologies Inc has shown a decreasing trend over the past five years, indicating a potential deterioration in the company's short-term liquidity position. As of December 31, 2023, the current ratio stands at 1.01, the lowest among the five reported periods.
A current ratio of 1.01 implies that the company may have just enough current assets to cover its current liabilities. This suggests a relatively tight liquidity position, where the company may face challenges in meeting its short-term obligations if they were all to come due at once.
Comparing this to the previous years, where the current ratio was higher (1.17 in 2022, 1.40 in 2021, 1.57 in 2020, and 1.14 in 2019), there seems to be a declining trend in the company's ability to cover its short-term liabilities with current assets.
Analysts and stakeholders may want to delve deeper into the company's financial statements to understand the underlying reasons for this decline in the current ratio and assess the company's overall financial health and liquidity risk.
Peer comparison
Dec 31, 2023