L3Harris Technologies Inc (LHX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 38,947,000 |
| 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 |
| Financial leverage ratio | 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 | 1.71 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,889,000K ÷ $18,998,000K
= 2.20
The financial leverage ratio of L3Harris Technologies Inc has shown some variability over the past few quarters, ranging from 1.71 to 2.27. The ratio measures the company's reliance on debt financing relative to its equity. A higher financial leverage ratio indicates a higher level of debt financing compared to equity.
L3Harris Technologies Inc's financial leverage ratio has generally been increasing since the third quarter of 2021, reaching a peak of 2.27 in the third quarter of 2023 before slightly decreasing in the most recent quarter to 2.20. This suggests that the company has been gradually increasing its debt levels in relation to equity, possibly to fund growth opportunities, acquisitions, or other investments.
A financial leverage ratio above 1 indicates that the company has more debt than equity, implying a higher level of financial risk. Investors and analysts typically monitor changes in the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risks effectively.
Overall, the increasing trend in L3Harris Technologies Inc's financial leverage ratio indicates a potential shift towards higher debt levels in its capital structure, which may require close monitoring to ensure sustainable financial health and stability.
Peer comparison
Sep 30, 2024