L3Harris Technologies Inc (LHX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 1.21% | 1.46% | 2.59% | 2.81% | -0.45% | 0.26% | 1.03% | -1.38% | 4.16% | 4.89% | 5.03% | 10.26% | 7.98% | 5.15% | 3.13% | 4.95% | 6.89% | 13.53% | 23.28% | 25.30% |
| Operating profit margin | 19.96% | 20.10% | 20.89% | 24.68% | 18.97% | 13.30% | 7.25% | 5.00% | 15.15% | 14.12% | 13.75% | 7.34% | 3.57% | 0.01% | -3.38% | -20.56% | -11.36% | -1.20% | 13.53% | 21.86% |
| Pretax margin | 5.90% | 5.96% | 6.61% | 9.18% | 5.40% | 6.48% | 7.59% | 8.02% | 13.48% | 13.25% | 12.87% | 10.84% | 10.30% | 9.18% | 7.55% | 8.54% | 8.59% | 9.96% | 13.25% | 16.72% |
| Net profit margin | 5.92% | 5.99% | 6.49% | 8.14% | 4.54% | 5.40% | 6.33% | 6.81% | 11.51% | 10.70% | 10.39% | 8.63% | 8.22% | 7.68% | 6.25% | 7.56% | 7.79% | 9.14% | 11.98% | 14.31% |
L3Harris Technologies Inc has experienced fluctuating profitability ratios over the past few quarters. The gross profit margin has shown a declining trend, falling from a high of 25.30% in June 2019 to 1.21% in June 2024. This indicates a decrease in the profitability of sales after accounting for the cost of goods sold.
However, the operating profit margin has been more stable, with some fluctuations but generally maintaining at moderate levels. It ranged between -20.56% in September 2020 to a peak of 24.68% in September 2023, suggesting L3Harris has been efficiently managing its operating expenses to generate profits from its core business operations.
The pretax margin, which reflects the company's profitability before accounting for taxes, has also exhibited variability. It peaked at 13.48% in September 2022 but has been on a downward trend since then, standing at 5.90% in June 2024. This indicates that despite generating operating profits, the company's bottom line is impacted by higher tax expenses or other non-operating factors.
Similarly, the net profit margin, representing the company's overall profitability after tax deductions, has shown fluctuations but generally followed a decreasing pattern. From a high of 14.31% in December 2020, it declined to 5.92% in June 2024. This indicates that L3Harris Technologies Inc's bottom line profitability has been impacted by various factors including operating costs, taxes, and other expenses.
In conclusion, while the company has managed to maintain stable operating profit margins, it is essential for L3Harris to address the declining trend in gross and net profit margins to ensure sustained profitability and long-term financial health.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.86% | 2.81% | 2.94% | 3.51% | 2.27% | 2.60% | 3.17% | 3.39% | 5.60% | 5.38% | 5.32% | 4.44% | 4.16% | 3.74% | 3.03% | 3.65% | 3.16% | 3.04% | 2.99% | 9.38% |
| Return on total capital | 13.65% | 8.84% | 4.83% | 6.70% | 3.21% | 4.04% | 4.92% | 3.27% | 9.62% | 9.29% | 14.13% | -0.79% | 2.81% | 6.96% | 5.87% | 6.53% | 5.50% | 5.24% | 5.09% | 20.86% |
| Return on equity (ROE) | 6.32% | 6.28% | 6.54% | 7.98% | 4.35% | 5.05% | 5.73% | 6.16% | 10.01% | 9.62% | 9.61% | 7.98% | 7.55% | 6.73% | 5.40% | 6.36% | 5.42% | 5.28% | 5.12% | 28.22% |
L3Harris Technologies Inc's profitability ratios show fluctuations over the periods analyzed.
- Operating return on assets (Operating ROA) ranged from 0.01% to 10.64%, indicating varying operational efficiency in generating profits from its assets.
- Return on assets (ROA) fluctuated between 2.27% and 5.60%, reflecting the company's ability to generate profits from its total assets.
- Return on total capital ranged from -0.79% to 20.86%, showcasing the return generated from all capital sources, including debt and equity.
- Return on equity (ROE) varied from 4.35% to 28.22%, demonstrating the return on shareholders' equity investment in the company.
L3Harris Technologies Inc's profitability ratios demonstrate the company's ability to generate profits relative to its assets, capital, and shareholders' equity, with some periods showing stronger performance than others.