L3Harris Technologies Inc (LHX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,502,000 | 1,227,000 | 1,062,000 | 1,846,000 | 1,119,000 |
| Total assets | US$ in thousands | 42,001,000 | 41,687,000 | 33,524,000 | 34,709,000 | 36,960,000 |
| ROA | 3.58% | 2.94% | 3.17% | 5.32% | 3.03% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,502,000K ÷ $42,001,000K
= 3.58%
Based on the data provided, L3Harris Technologies Inc's return on assets (ROA) has shown fluctuations over the past five years. In December 31, 2020, the ROA was 3.03%, which then increased to 5.32% by December 31, 2021, indicating improved asset utilization and/or profitability.
However, in the following years, the ROA experienced some volatility, dropping to 3.17% by December 31, 2022, and further declining to 2.94% by December 31, 2023. This decrease suggests potential challenges in maintaining profitability relative to the level of assets deployed.
Nevertheless, there was a recovery in the ROA by December 31, 2024, reaching 3.58%. This increase could indicate that the company implemented strategies to enhance its asset efficiency and profitability during that period.
Overall, the trend in L3Harris Technologies Inc's ROA shows some fluctuations, emphasizing the importance of consistent performance in effectively utilizing its assets to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024