L3Harris Technologies Inc (LHX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 19,514,000 | 18,765,000 | 18,523,000 | 19,213,000 | 20,724,000 |
| ROE | 7.70% | 6.54% | 5.73% | 9.61% | 5.40% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,502,000K ÷ $19,514,000K
= 7.70%
To analyze L3Harris Technologies Inc's Return on Equity (ROE) over the years, we observe a trend of fluctuation.
- In 2020, the ROE was at 5.40%, indicating a relatively lower return on equity for that period.
- The ROE then improved significantly to 9.61% by the end of 2021, showing a positive uptrend in profitability.
- However, in 2022, the ROE decreased to 5.73%, indicating a decline in the company's ability to generate profit from its equity.
- In 2023, there was a slight improvement in ROE to 6.54%, but it still remained below the 2021 level.
- By the end of 2024, the ROE further increased to 7.70%, reflecting a positive sign of enhanced profitability compared to the previous year.
Overall, the fluctuating trend in ROE suggests that L3Harris Technologies Inc's profitability and efficiency in utilizing shareholder equity have varied over the years. The company may need to focus on sustaining or improving its ROE to ensure optimal returns for its shareholders in the future.
Peer comparison
Dec 31, 2024