L3Harris Technologies Inc (LHX)
Return on total capital
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,429,000 | 4,010,000 | 2,634,000 | 1,444,000 | 1,995,000 | 845,000 | 1,072,000 | 1,217,000 | 829,000 | 2,515,000 | 2,446,000 | 3,710,000 | -209,000 | 758,000 | 1,909,000 | 1,623,000 | 1,800,000 | 1,561,000 | 1,478,000 | 1,481,000 |
| Long-term debt | US$ in thousands | 11,093,000 | 10,533,000 | 11,140,000 | 11,160,000 | 11,140,000 | 7,867,000 | 8,220,000 | 6,225,000 | 7,030,000 | 7,044,000 | 7,057,000 | 7,048,000 | 7,064,000 | 7,072,000 | 7,078,000 | 6,943,000 | 6,261,000 | 6,273,000 | 6,294,000 | 6,307,000 |
| Total stockholders’ equity | US$ in thousands | 18,998,000 | 18,840,000 | 18,666,000 | 18,765,000 | 18,616,000 | 18,428,000 | 18,306,000 | 18,523,000 | 18,337,000 | 19,086,000 | 19,260,000 | 19,213,000 | 19,484,000 | 19,863,000 | 20,367,000 | 20,724,000 | 21,313,000 | 22,102,000 | 21,898,000 | 22,773,000 |
| Return on total capital | 18.04% | 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,429,000K ÷ ($11,093,000K + $18,998,000K)
= 18.04%
L3Harris Technologies Inc has demonstrated varying levels of return on total capital over the past few quarters. The return on total capital has trended upwards, with a notable increase from -0.79% in the fourth quarter of 2021 to 18.04% in the third quarter of 2024. This suggests an improvement in the company's ability to generate profit from the capital invested in its operations.
The return on total capital of 18.04% in the most recent quarter indicates that the company is generating $0.18 in profit for every dollar of capital invested. This demonstrates a strong performance in utilizing its capital efficiently to generate returns for its stakeholders.
Overall, the increasing trend in return on total capital for L3Harris Technologies Inc reflects positively on the company's financial performance and efficiency in deploying capital to generate profits. It indicates effective management of resources and a strengthening financial position, which may be attractive to investors looking for companies with a solid return on investment.
Peer comparison
Sep 30, 2024