L3Harris Technologies Inc (LHX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 25.90% | 26.33% | 28.88% | 30.18% | 29.17% |
| Operating profit margin | 8.99% | 7.34% | 13.90% | 14.40% | 13.16% |
| Pretax margin | 7.49% | 6.29% | 7.46% | 12.82% | 7.27% |
| Net profit margin | 7.04% | 6.32% | 6.22% | 10.36% | 6.15% |
L3Harris Technologies Inc has shown a stable performance in terms of gross profit margin, which slightly increased from 29.17% in 2020 to 30.18% in 2021, but then decreased to 28.88% in 2022 and further to 26.33% by 2023. In 2024, the gross profit margin stood at 25.90%.
Regarding operating profit margin, the company exhibited an increasing trend from 13.16% in 2020 to 14.40% in 2021. However, there was a significant decline in 2023 with a margin of 7.34%, followed by a slight improvement to 8.99% in 2024.
In terms of pretax margin, there was a notable spike in 2021 to 12.82% compared to 7.27% in 2020. However, the margin decreased to 7.46% in 2022, further dropping to 6.29% in 2023, and slightly recovering to 7.49% in 2024.
Lastly, the net profit margin saw a substantial increase from 6.15% in 2020 to 10.36% in 2021. Despite this, the net profit margin declined to 6.22% in 2022, followed by a modest increase to 6.32% in 2023 and a further improvement to 7.04% in 2024.
Overall, L3Harris Technologies Inc demonstrated fluctuations in its profitability margins over the years, indicating various factors impacting its bottom line performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.57% | 3.42% | 7.08% | 7.39% | 6.48% |
| Return on assets (ROA) | 3.58% | 2.94% | 3.17% | 5.32% | 3.03% |
| Return on total capital | 11.64% | 9.41% | 8.38% | 13.26% | 7.68% |
| Return on equity (ROE) | 7.70% | 6.54% | 5.73% | 9.61% | 5.40% |
L3Harris Technologies Inc's profitability ratios show varying performance over the years.
1. Operating Return on Assets (Operating ROA) improved from 6.48% in December 2020 to 7.39% in December 2021, indicating enhanced operational efficiency. However, it slightly decreased to 7.08% in December 2022 before dropping to 3.42% in December 2023. The ratio then rebounded to 4.57% in December 2024, albeit remaining below the 2021 peak.
2. Return on Assets (ROA) experienced fluctuations, starting at 3.03% in December 2020 and rising significantly to 5.32% in December 2021. However, the ratio declined to 2.94% in December 2023 and improved to 3.58% in December 2024, showing overall stability with slight fluctuations over the years.
3. Return on Total Capital displayed strong growth, increasing from 7.68% in December 2020 to 13.26% in December 2021. The ratio then moderated to 8.38% in December 2022 and further stabilized at around 9-11% range in the following years, indicating efficient utilization of total capital while maintaining profitability.
4. Return on Equity (ROE) followed a similar trend to ROA, with a rise from 5.40% in December 2020 to 9.61% in December 2021, reflecting improved returns to equity holders. The ratio slightly fluctuated in the subsequent years, ending at 7.70% in December 2024, demonstrating a relatively steady performance in generating profits for shareholders.
Overall, while L3Harris Technologies Inc's profitability ratios showed some volatility, the company generally maintained stable returns on assets, total capital, and equity over the analyzed period. Continual monitoring of these ratios will be essential to assess the company's financial health and performance in the future.