L3Harris Technologies Inc (LHX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 2.46% | 2.86% | 5.96% | 1.30% | 29.61% |
| Operating profit margin | 7.55% | 6.72% | 15.61% | 12.07% | 21.80% |
| Pretax margin | 6.62% | 7.59% | 12.87% | 7.55% | 16.72% |
| Net profit margin | 6.50% | 6.33% | 10.39% | 6.25% | 14.31% |
L3Harris Technologies Inc's profitability ratios have shown varying trends over the past few years.
- The gross profit margin has been declining, from 29.61% in Jun 2019 to 2.46% in Dec 2023. This indicates that the company's cost of goods sold has been increasing relative to its revenue, resulting in a lower gross profit margin.
- The operating profit margin has also shown a downward trend, from 21.80% in Jun 2019 to 7.55% in Dec 2023. This suggests that the company's operating expenses have been growing faster than its operating income, leading to a decrease in profitability at the operating level.
- The pretax margin has fluctuated over the years, with a peak of 16.72% in Jun 2019 and a low of 6.62% in Dec 2023. This ratio indicates the company's ability to generate profit before accounting for taxes, with the recent decline signaling potential challenges in managing expenses and taxes effectively.
- The net profit margin has also experienced fluctuations, ranging from 14.31% in Jun 2019 to 6.50% in Dec 2023. This ratio reflects the company's overall profit after all expenses have been deducted, and the decreasing trend suggests that L3Harris Technologies Inc may be facing challenges in maintaining profitability.
Overall, the declining profitability ratios of L3Harris Technologies Inc indicate potential challenges in managing costs and expenses relative to revenue generation. Further analysis of the company's financial performance and operational efficiency may be required to identify the underlying causes of these trends and develop appropriate strategies for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.42% | 3.36% | 7.99% | 5.85% | 14.29% |
| Return on assets (ROA) | 2.94% | 3.17% | 5.32% | 3.03% | 9.38% |
| Return on total capital | 4.77% | 7.38% | 10.56% | 5.87% | 20.86% |
| Return on equity (ROE) | 6.54% | 5.73% | 9.61% | 5.40% | 28.22% |
L3Harris Technologies Inc's profitability ratios show varying trends over the past five years. The operating return on assets (Operating ROA) decreased slightly from 2019 to 2020, then experienced a significant drop in 2021 before showing a slight increase in 2022 and 2023. This ratio indicates the company's ability to generate operating profit from its assets, with the recent figures suggesting a stabilization in performance.
The return on assets (ROA) also demonstrated fluctuations over the same period, with a peak in 2022 followed by a decline in 2023. ROA measures the efficiency of utilizing assets to generate earnings, and the downward trend in recent years may indicate challenges in asset utilization or profitability.
The return on total capital reflects the company's ability to generate returns for both debt and equity holders. L3Harris Technologies Inc experienced a significant decrease in this ratio from 2019 to 2020, followed by a partial recovery in the subsequent years. The latest figure in 2023 shows an improvement but remains below the levels seen in earlier years.
Lastly, the return on equity (ROE) also displayed downward movement from 2019 to 2020 before recovering slightly in the following years. ROE measures the effectiveness of generating profits from shareholders' equity, and the recent figures suggest a moderate performance in this aspect.
Overall, the profitability ratios of L3Harris Technologies Inc indicate a mix of challenges and improvements in recent years, reflected in varying returns generated from assets, capital, and equity. Further analysis may be required to understand the underlying factors driving these trends and to assess the company's overall financial performance.