L3Harris Technologies Inc (LHX)
Return on total capital
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,278,000 |
| Long-term debt | US$ in thousands | 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 | 2,763,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,363,000 |
| Return on total capital | 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% | 20.86% |
June 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,010,000K ÷ ($10,533,000K + $18,840,000K)
= 13.65%
Return on total capital is a key financial metric that indicates the efficiency and profitability of a company in generating returns from its invested capital. Analyzing the historical trend of L3Harris Technologies Inc's return on total capital reveals fluctuating performance over the past few quarters.
In Jun 30, 2024, L3Harris Technologies Inc achieved a return on total capital of 13.65%, showing a significant improvement compared to the previous quarter where it was 8.84%. This indicates that the company was able to generate higher returns relative to its total capital during this period.
Looking back at the performance in Dec 31, 2021, L3Harris Technologies Inc recorded a return on total capital of 14.13%, which was notably higher than the industry average. This denotes a strong performance in efficiently utilizing its capital resources to generate profits.
However, the company's return on total capital experienced fluctuations over the analyzed period, with negative performance observed in Sep 30, 2021, with a return on total capital of -0.79%. This could be a red flag indicating potential challenges faced by the company during that quarter.
Overall, L3Harris Technologies Inc's return on total capital has shown varying performance levels over the quarters, with some quarters indicating strong profitability and efficient capital utilization, while others showcasing challenges in generating adequate returns on invested capital. It is essential for investors and stakeholders to closely monitor these trends to assess the company's financial health and operational efficiency.
Peer comparison
Jun 30, 2024