L3Harris Technologies Inc (LHX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,429,000 | 4,010,000 | 2,634,000 | 1,444,000 | 1,995,000 | 845,000 | 1,072,000 | 1,217,000 | 829,000 | 2,515,000 | 2,446,000 | 3,710,000 | -209,000 | 758,000 | 1,909,000 | 1,623,000 | 1,800,000 | 1,561,000 | 1,478,000 | 1,481,000 |
| Interest expense (ttm) | US$ in thousands | 685,000 | 678,000 | 617,000 | 543,000 | 446,000 | 357,000 | 313,000 | 279,000 | 272,000 | 269,000 | 267,000 | 268,000 | 269,000 | 268,000 | 271,000 | 270,000 | 269,000 | 242,000 | 217,000 | 192,000 |
| Interest coverage | 7.93 | 5.91 | 4.27 | 2.66 | 4.47 | 2.37 | 3.42 | 4.36 | 3.05 | 9.35 | 9.16 | 13.84 | -0.78 | 2.83 | 7.04 | 6.01 | 6.69 | 6.45 | 6.81 | 7.71 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,429,000K ÷ $685,000K
= 7.93
L3Harris Technologies Inc's interest coverage ratio has displayed fluctuations over the analyzed periods. The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income.
From December 2021 to March 2023, the interest coverage ratio exhibited a generally improving trend, reaching a peak of 13.84 in March 2023. This indicates a strong ability to cover interest payments from operating earnings during this period.
However, the ratio experienced a significant decline in the following quarters until December 2023, potentially signaling a decrease in the company's ability to cover interest expenses. The interest coverage ratio hit a low of -0.78 in December 2021, suggesting that operating income was insufficient to cover interest payments during that period.
From March 2022 onwards, the interest coverage ratio improved, indicating a recovery in the company's ability to service interest obligations. Notably, in September 2024, the interest coverage ratio stood at 7.93, which indicates a favorable ability to cover interest expenses from operating income during that quarter.
Overall, the fluctuations in L3Harris Technologies Inc's interest coverage ratio suggest varying levels of financial strength and operational efficiency in meeting its interest obligations over the analyzed periods. Further analysis and monitoring of this ratio will be essential to assess the company's ability to manage its debt and financial health effectively.
Peer comparison
Sep 30, 2024