L3Harris Technologies Inc (LHX)

Financial leverage ratio

		Dec 31, 2024	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
Total assets	US$ in thousands	42,001,000	41,889,000	41,657,000	41,816,000	41,687,000	42,293,000	35,362,000	35,507,000	33,524,000	33,381,000	34,138,000	34,444,000	34,709,000	35,018,000	36,064,000	36,590,000	36,960,000	37,145,000	37,852,000	38,105,000
Total stockholders’ equity	US$ in thousands	19,514,000	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
Financial leverage ratio		2.15	2.20	2.21	2.24	2.22	2.27	1.92	1.94	1.81	1.82	1.79	1.79	1.81	1.80	1.82	1.80	1.78	1.74	1.71	1.74

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 exhibited a fluctuating trend over the past few years, starting at 1.74 as of March 31, 2020, and reaching a peak of 2.27 by September 30, 2023. This indicates an increase in the company's reliance on debt to finance its operations during this period. It is worth noting that the ratio declined slightly to 2.15 by December 31, 2024, suggesting a potential effort to reduce debt levels or optimize the capital structure.

Overall, the increasing trend in the financial leverage ratio signals a higher level of financial risk for L3Harris Technologies Inc, as higher leverage typically implies increased interest payments and potential vulnerability to economic downturns. It would be essential for the company to carefully manage its debt levels and liquidity position to ensure sustainable growth and financial stability in the long term.