L3Harris Technologies Inc (LHX)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Jun 30, 2019
Long-term debt	US$ in thousands	11,160,000	6,225,000	7,048,000	6,943,000	2,763,000
Total stockholders’ equity	US$ in thousands	18,765,000	18,523,000	19,213,000	20,724,000	3,363,000
Debt-to-capital ratio		0.37	0.25	0.27	0.25	0.45

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $11,160,000K ÷ ($11,160,000K + $18,765,000K)
= 0.37

The debt-to-capital ratio of L3Harris Technologies Inc has shown fluctuations over the past five years. As of Dec 31, 2023, the ratio stood at 0.37, reflecting an increase from the previous year's 0.25 level. This suggests that the company's reliance on debt has grown in relation to its total capital structure.

Comparing this to the ratios of 0.27 in Dec 31, 2021, and 0.25 in Dec 31, 2020, it can be observed that the company has generally maintained a stable debt-to-capital ratio, with some variations. Notably, the ratio spiked to 0.45 as of June 30, 2019, indicating a significant increase in debt relative to total capital at that point in time.

Overall, the upward trend in the debt-to-capital ratio from 2020 to 2023 may signify an increased debt burden or strategic financing decisions by L3Harris Technologies Inc. Further analysis of the company's financial health and operational performance would be necessary to fully understand the implications of these changes in the debt-to-capital ratio.