L3Harris Technologies Inc (LHX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.25 | 0.27 | 0.27 | 0.26 | 0.22 | 0.23 | 0.19 | 0.21 | 0.21 | 0.20 | 0.20 | 0.20 | 0.20 | 0.19 | 0.19 | 0.17 | 0.17 | 0.17 | 0.16 |
| Debt-to-capital ratio | 0.37 | 0.36 | 0.37 | 0.37 | 0.37 | 0.30 | 0.31 | 0.25 | 0.28 | 0.27 | 0.27 | 0.27 | 0.27 | 0.26 | 0.26 | 0.25 | 0.23 | 0.22 | 0.22 | 0.22 |
| Debt-to-equity ratio | 0.58 | 0.56 | 0.60 | 0.59 | 0.60 | 0.43 | 0.45 | 0.34 | 0.38 | 0.37 | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.34 | 0.29 | 0.28 | 0.29 | 0.28 |
| 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 |
The solvency ratios of L3Harris Technologies Inc over the recent 5 quarters indicate a stable debt management strategy. The debt-to-assets ratio has remained relatively consistent, ranging from 0.25 to 0.27, suggesting that the company finances a moderate portion of its assets with debt, maintaining financial flexibility.
The debt-to-capital ratio has also shown stability around 0.36 to 0.37, indicating that around 36% to 37% of the company's capital structure is funded by debt. This suggests a balanced mix of debt and equity in the company's capitalization.
The debt-to-equity ratio has varied between 0.56 and 0.60, indicating that the company has maintained a moderate level of financial leverage, with debt accounting for approximately 56% to 60% of the company's equity. This ratio suggests that the company relies on a reasonable level of debt to finance its operations.
The financial leverage ratio, which measures the extent to which the company uses debt to finance its assets, has also demonstrated stability, ranging from 2.20 to 2.24. This indicates that the company has a stable financial structure with a moderate level of leverage relative to its equity.
Overall, based on the solvency ratios, L3Harris Technologies Inc appears to have a consistent and balanced approach to managing its debt levels, which reflects positively on its ability to meet its financial obligations and maintain a healthy financial position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio, which measures a company's ability to meet its interest obligations on outstanding debt with its earnings before interest and taxes (EBIT), for L3Harris Technologies Inc has varied over the recent quarters.
At September 30, 2024, the interest coverage ratio was 7.93, indicating that the company's EBIT was sufficient to cover its interest expenses by nearly 8 times. This suggests a healthy financial position and a comfortable ability to fulfill its interest payment obligations. However, it is important to note that the ratio was lower in the previous quarter at 5.91, signifying a slight decline in the company's ability to cover interest expenses.
Looking further back, the interest coverage ratio has experienced fluctuations over the past several quarters, with both peaks and troughs. Notably, the interest coverage ratio was negative at -0.78 at December 31, 2021, which implies that the company's EBIT was inadequate to cover its interest costs during that period, raising concerns about its financial health.
Overall, the trend in the interest coverage ratio for L3Harris Technologies Inc suggests variability in its ability to cover interest payments with operating earnings, indicating fluctuations in its financial performance and possible variations in its debt management strategy. Further analysis would be beneficial to understand the underlying reasons for these fluctuations and assess the company's long-term financial sustainability.