L3Harris Technologies Inc (LHX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 560,000 | 880,000 | 941,000 | 1,276,000 | 530,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 7,879,000 | 5,920,000 | 5,968,000 | 1,344,000 | 457,000 |
| Total current liabilities | US$ in thousands | 8,004,000 | 5,776,000 | 4,551,000 | 4,240,000 | 2,268,000 |
| Quick ratio | 1.05 | 1.18 | 1.52 | 0.62 | 0.44 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($560,000K
+ $—K
+ $7,879,000K)
÷ $8,004,000K
= 1.05
The quick ratio of L3Harris Technologies Inc has shown variability over the past five years. The quick ratio is a measure of a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities, with a higher ratio suggesting a stronger liquidity position.
For L3Harris Technologies Inc:
- In 2023, the quick ratio was 1.05, indicating that the company had $1.05 in liquid assets available for every $1 of short-term liabilities. This suggests a relatively healthy liquidity position.
- In 2022, the quick ratio was 1.18, showing a slight improvement compared to 2023.
- In 2021, the quick ratio was 1.52, marking a significant increase from the previous year. This suggests that the company had significantly improved its liquidity position in that year.
- In 2020, the quick ratio was 0.62, indicating a decrease in liquidity compared to 2021. This may have raised concerns about the company's ability to meet short-term obligations using its liquid assets.
- In June 2019, the quick ratio was 0.44, the lowest among the reported years, suggesting a comparatively weaker liquidity position at that time.
Overall, the trend in the quick ratio indicates fluctuations in L3Harris Technologies Inc's liquidity position over the past five years, with improvements seen in some years and deterioration in others. Investors and stakeholders may pay attention to this metric to assess the company's ability to manage its short-term financial obligations.
Peer comparison
Dec 31, 2023