L3Harris Technologies Inc (LHX)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,227,000 | 1,062,000 | 1,846,000 | 1,119,000 | 949,000 |
| Total stockholders’ equity | US$ in thousands | 18,765,000 | 18,523,000 | 19,213,000 | 20,724,000 | 3,363,000 |
| ROE | 6.54% | 5.73% | 9.61% | 5.40% | 28.22% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,227,000K ÷ $18,765,000K
= 6.54%
L3Harris Technologies Inc's return on equity (ROE) has shown varying trends over the past five years. In 2023, the ROE was 6.54%, indicating a slight improvement from the previous year's ROE of 5.73%. However, compared to 2021 when the ROE stood at 9.61%, the recent performance has been weaker.
The ROE in 2020 was 5.40%, showing a similar level to 2022. It is notable that the ROE peaked in 2019 at 28.22%, significantly higher than the subsequent years. This substantial drop from 2019 to 2020 and the subsequent years may indicate challenges or changes within the company that impacted its ability to generate returns on equity.
Overall, L3Harris Technologies Inc's ROE has been relatively low in recent years, suggesting potential issues with profitability and efficiency in utilizing shareholder equity. Further analysis of the company's financial performance and strategy may be needed to understand the factors contributing to these fluctuations in ROE.
Peer comparison
Dec 31, 2023