L3Harris Technologies Inc (LHX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,993,000 | 1,981,000 | 2,045,000 | 2,051,000 | 2,108,000 | 2,176,000 | 2,168,000 | 2,243,000 | 2,372,000 | 2,374,000 | 2,449,000 | 2,469,000 | 2,535,000 | 2,583,000 | 2,547,000 | 2,455,000 | 2,401,000 | 2,264,000 | 1,952,000 | 1,773,000 |
| Total assets | US$ in thousands | 42,001,000 | 41,889,000 | 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 |
| Operating ROA | 4.75% | 4.73% | 4.91% | 4.90% | 5.06% | 5.15% | 6.13% | 6.32% | 7.08% | 7.11% | 7.17% | 7.17% | 7.30% | 7.38% | 7.06% | 6.71% | 6.50% | 6.10% | 5.16% | 4.65% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,993,000K ÷ $42,001,000K
= 4.75%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profits from its assets used in operations. In the case of L3Harris Technologies Inc, the operating ROA has shown a fluctuating trend over the analyzed periods.
Starting from March 31, 2020, with an operating ROA of 4.65%, the ratio gradually increased over the subsequent quarters, reaching its peak at 7.38% on September 30, 2021. This period of consistent improvement highlights the company's ability to efficiently utilize its assets to generate operating income.
However, from March 31, 2022, the operating ROA started to decline, falling to 5.06% by December 31, 2023. This decline could indicate challenges in maintaining profitability relative to the level of assets employed in the business.
It is important to note that a decreasing trend in operating ROA may signal inefficiencies in asset utilization or declining profitability. Management should closely monitor this ratio to ensure sustainable returns on assets in the future.
As of December 31, 2024, L3Harris Technologies Inc's operating ROA stood at 4.75%, indicating a slight improvement from the previous period but still lower than the peak observed in prior quarters. The company may need to focus on optimizing asset efficiency and profitability to enhance its overall financial performance in the upcoming periods.
Peer comparison
Dec 31, 2024