L3Harris Technologies Inc (LHX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,918,000 | 1,426,000 | 2,372,000 | 2,565,000 | 2,394,000 |
| Total assets | US$ in thousands | 42,001,000 | 41,687,000 | 33,524,000 | 34,709,000 | 36,960,000 |
| Operating ROA | 4.57% | 3.42% | 7.08% | 7.39% | 6.48% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,918,000K ÷ $42,001,000K
= 4.57%
L3Harris Technologies Inc's operating return on assets (operating ROA) has shown some fluctuations over the past five years. The trend indicates a positive increase from 6.48% in December 2020 to 7.39% in December 2021, demonstrating an improvement in the company's operating efficiency in generating earnings from its assets. However, there was a slight decrease to 7.08% in December 2022 and a more significant drop to 3.42% in December 2023, which may signal operational challenges or changes in the company's asset utilization.
Subsequently, the operating ROA increased to 4.57% by December 2024, showing a partial recovery, but still below the levels seen in the earlier years. Overall, the fluctuating trend in operating ROA indicates potential variability in the company's ability to generate profits from its assets efficiently. Further analysis of the factors influencing these fluctuations would be necessary to understand the underlying reasons driving the changes in operating ROA.
Peer comparison
Dec 31, 2024