L3Harris Technologies Inc (LHX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of L3Harris Technologies Inc indicate a consistently strong financial position over the reporting periods. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 throughout the years, signaling that the company is not highly leveraged and has a healthy balance between its debt and assets.
The financial leverage ratio, however, has shown a slight increasing trend from 1.74 in March 2020 to 2.15 in December 2024. This suggests that the company's reliance on debt to finance its operations has increased over time, but it is important to note that the ratio still remains at manageable levels.
Overall, L3Harris Technologies Inc's solvency ratios demonstrate a stable and sound financial position with low debt levels relative to its assets and equity, indicating a conservative approach to capital structure management.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.68 | 3.79 | 3.77 | 3.99 | 4.25 | 4.84 | 3.78 | 4.55 | 5.56 | 5.88 | 9.20 | 9.33 | 9.65 | 10.18 | 10.25 | 9.90 | 9.80 | 11.73 | 10.35 | 10.70 |
The interest coverage ratio for L3Harris Technologies Inc has shown a declining trend over the past few years, starting at around 10.70 in March 2020 and gradually decreasing to approximately 3.68 by December 2024.
This suggests that the company's ability to meet its interest obligations from its operating income has weakened over time. A declining interest coverage ratio may indicate a higher financial risk for the company, as it implies that the company may have less buffer to cover interest expenses with its operating income.
It is essential for investors and creditors to monitor this ratio closely as a decreasing trend in interest coverage could signal potential financial stress for the company. Further analysis of the company's overall financial health, debt levels, and profitability should be conducted to gain a comprehensive understanding of its financial position.