L3Harris Technologies Inc (LHX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 42,001,000 | 41,687,000 | 33,524,000 | 34,709,000 | 36,960,000 |
| Total stockholders’ equity | US$ in thousands | 19,514,000 | 18,765,000 | 18,523,000 | 19,213,000 | 20,724,000 |
| Financial leverage ratio | 2.15 | 2.22 | 1.81 | 1.81 | 1.78 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $42,001,000K ÷ $19,514,000K
= 2.15
The financial leverage ratio of L3Harris Technologies Inc has shown a slight increase over the years, from 1.78 in December 2020 to 2.15 in December 2024. This indicates that the company's reliance on debt to finance its operations has increased. A higher financial leverage ratio suggests that a greater portion of the company's assets is funded by debt rather than equity. It also implies a higher level of financial risk, as higher debt levels can lead to increased interest expenses and potentially impact profitability. L3Harris Technologies Inc should closely monitor its leverage levels to ensure they remain sustainable and in line with its overall financial strategy.
Peer comparison
Dec 31, 2024