L3Harris Technologies Inc (LHX)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.37	0.36	0.37	0.37	0.37	0.30	0.31	0.25	0.28	0.27	0.27	0.27	0.27	0.26	0.26	0.25	0.23	0.22	0.22	0.22

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $11,093,000K ÷ ($11,093,000K + $18,998,000K)
= 0.37

The debt-to-capital ratio of L3Harris Technologies Inc has shown variability over the periods outlined in the table. As of September 30, 2024, the ratio stands at 0.37, indicating that debt represents 37% of the company's total capital. This figure has been relatively stable in recent quarters, hovering around the 0.36 to 0.37 range.

Looking at historical trends, the debt-to-capital ratio has exhibited an upward trajectory since March 31, 2023, reflecting an increase in the proportion of debt relative to total capital. This may suggest that the company has been relying more on debt financing to support its operations or growth initiatives during this period.

Comparing the current ratio to earlier periods, it is notably higher than levels seen in 2020 and the first half of 2021. This suggests a shift in the company's capital structure towards a slightly higher reliance on debt in recent quarters. However, it is also important to note that the ratio remains within a reasonable range and does not indicate excessive leverage that could pose significant financial risk.

Overall, the debt-to-capital ratio of L3Harris Technologies Inc underscores the importance of ongoing monitoring to assess the company's capital structure and financial risk management strategies in the context of its operational and strategic priorities.