L3Harris Technologies Inc (LHX)
Financial leverage ratio
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 10,117,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 3,363,000 |
| Financial leverage ratio | 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 | 3.01 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $41,657,000K ÷ $18,840,000K
= 2.21
The financial leverage ratio of L3Harris Technologies Inc has shown some fluctuations over the periods analyzed. The ratio ranged from a low of 1.71 to a high of 3.01. Overall, the trend indicates an increasing level of financial leverage from the start of the period under review until around the midway point (Dec 31, 2021), after which there was a decrease in leverage.
From the beginning to Dec 31, 2021, the financial leverage ratio increased steadily from 1.71 to around 2.21, peaking at 3.01 on Sep 30, 2019, before starting to decrease. The decrease in leverage post-Dec 31, 2021, may suggest a strategic effort to reduce reliance on debt to finance operations, potentially in response to market conditions or internal performance targets.
It is important to consider the reasons behind these changes in the financial leverage ratio and how it aligns with the company's overall financial strategy. A higher financial leverage ratio indicates higher financial risk due to increased reliance on debt, while a lower ratio may imply a stronger equity base. Companies often aim to strike a balance between debt and equity financing to optimize their capital structure and cost of capital.
Peer comparison
Jun 30, 2024