L3Harris Technologies Inc (LHX)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	4,010,000	3,934,000	3,949,000	4,500,000	3,350,000	2,277,000	1,217,000	829,000	2,515,000	2,446,000	2,444,000	1,323,000	651,000	2,000	-606,000	-3,688,000	-1,745,000	-152,000	1,316,000	1,450,000
Total assets	US$ in thousands	41,657,000	41,816,000	41,687,000	42,293,000	35,362,000	35,507,000	33,524,000	33,381,000	34,138,000	34,444,000	34,709,000	35,018,000	36,064,000	36,590,000	36,960,000	37,145,000	37,852,000	38,105,000	38,947,000	10,117,000
Operating ROA		9.63%	9.41%	9.47%	10.64%	9.47%	6.41%	3.63%	2.48%	7.37%	7.10%	7.04%	3.78%	1.81%	0.01%	-1.64%	-9.93%	-4.61%	-0.40%	3.38%	14.33%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $4,010,000K ÷ $41,657,000K
= 9.63%

Operating return on assets (operating ROA) for L3Harris Technologies Inc has shown some fluctuations over the past few quarters. The trend indicates a general improvement in operating ROA from the end of 2020 to mid-2023, with a significant peak in September 2023 at 10.64%. However, after reaching this peak, there was a gradual decline in the metric until June 2024, where it stood at 9.63%.

The consistent positive values from December 2020 to June 2023, peaking in September 2023, suggest that the company efficiently utilized its assets to generate operating income during this period.

However, the subsequent decline in operating ROA from September 2023 to June 2024 indicates a potential decrease in the company's ability to generate operating income relative to its asset base. This trend warrants further investigation to understand the factors contributing to the decline and to implement strategies to improve operating ROA moving forward.