L3Harris Technologies Inc (LHX) Financial Statements

The financial health of L3Harris Technologies is characterized by low growth and modest profitability, which are unfavourable against the GoodMoat quality framework. Revenue growth of 2.3% YoY is minimal and does not meet the framework's preference for consistent, double-digit growth. Profitability metrics are weak: an operating margin of 9.7% and a profit margin of 7.3% are low for a high-quality industrial, and an ROE of 8.2% is well below the 15-20% threshold for a sustainably high return on invested capital. The free cash flow yield of 4.1% indicates positive generation, but the conversion rate from earnings is unclear without the EBITDA figure. The balance sheet shows moderate leverage with a Debt/Equity ratio of 0.53, which is manageable and below the framework's caution level of 1.0x Debt/EBITDA, though the exact EBITDA multiple cannot be calculated from the provided data. The growth assessment is clearly unfavourable, with the 2.3% revenue trajectory showing no acceleration and failing to meet the 20%+ threshold, suggesting a lack of durable growth drivers. Overall, the company scores poorly on key quality indicators like ROIC, revenue growth, and margins, placing it in an 'Unfavourable' category for quality-focused value investors who seek high returns and strong growth. Analysis based on data as of 2024-05-15.