L3Harris Technologies Inc (LHX)

Debt-to-equity 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-equity ratio		0.59	0.34	0.37	0.34	0.82

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $11,160,000K ÷ $18,765,000K
= 0.59

The debt-to-equity ratio of L3Harris Technologies Inc has shown some fluctuations over the past five years. In 2020, the ratio was at its lowest point of 0.34, indicating a lower level of financial leverage with a higher proportion of equity financing compared to debt. This was followed by a slight increase to 0.37 in 2021, suggesting a moderate uptick in the company's reliance on debt for funding its operations.

In 2022, the debt-to-equity ratio further increased to 0.34, returning to the same level as in 2020. This could indicate that the company managed to maintain a balanced capital structure with a conservative approach towards debt. However, by the end of 2023, the ratio rose significantly to 0.59, signifying a notable increase in the company's financial leverage and greater reliance on debt financing relative to equity.

The spike in the debt-to-equity ratio in 2023 suggests that L3Harris Technologies Inc may have taken on additional debt, potentially for strategic investments, acquisitions, or other capital-intensive projects. Investors and stakeholders should closely monitor the company's debt levels and debt management strategies to ensure that it remains sustainable and in line with its overall financial health and objectives.