L3Harris Technologies Inc (LHX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,218,000 | 8,055,000 | 6,754,000 | 6,359,000 | 6,667,000 |
| Total current liabilities | US$ in thousands | 7,633,000 | 8,004,000 | 5,776,000 | 4,551,000 | 4,240,000 |
| Current ratio | 1.08 | 1.01 | 1.17 | 1.40 | 1.57 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,218,000K ÷ $7,633,000K
= 1.08
The current ratio of L3Harris Technologies Inc has shown a declining trend over the past five years. Starting at 1.57 in December 31, 2020, the ratio decreased to 1.40 by December 31, 2021, further dropping to 1.17 by December 31, 2022, and then to 1.01 by December 31, 2023. However, there was a slight improvement in the current ratio to 1.08 by December 31, 2024.
A current ratio above 1 indicates that the company's current assets are sufficient to cover its current liabilities, with a higher ratio generally signaling better short-term financial health. While the company's current ratio has decreased over the years, it remained above 1 in all the reported periods, suggesting that L3Harris Technologies Inc has generally been able to meet its short-term obligations using its current assets. However, the declining trend in the current ratio may indicate a need for further scrutiny of the company's liquidity position and potential difficulties in meeting short-term obligations in the future.
Peer comparison
Dec 31, 2024