L3Harris Technologies Inc (LHX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,272,000 | 1,766,000 | 1,552,000 | 2,548,000 | 1,592,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 19,514,000 | 18,765,000 | 18,523,000 | 19,213,000 | 20,724,000 |
| Return on total capital | 11.64% | 9.41% | 8.38% | 13.26% | 7.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,272,000K ÷ ($—K + $19,514,000K)
= 11.64%
The return on total capital for L3Harris Technologies Inc has displayed fluctuations over the past five years. Starting at 7.68% as of December 31, 2020, the return increased notably to 13.26% by December 31, 2021, indicating improved efficiency in generating returns from the total capital employed. However, there was a slight decrease in the return to 8.38% by December 31, 2022, before slightly rebounding to 9.41% by December 31, 2023. Notably, by the end of December 31, 2024, the return on total capital climbed to 11.64%.
Overall, the trend suggests some variability in the company's ability to generate returns from the total capital employed, with the return fluctuating within a range over the years. Further analysis into the factors influencing these fluctuations would be necessary to provide a more in-depth assessment of L3Harris Technologies Inc's financial performance.
Peer comparison
Dec 31, 2024