L3Harris Beneish M Score

LHX -  USA Stock  

USD 229.40  7.25  3.06%

This module uses fundamental data of L3Harris Technologies to approximate the value of its Beneish M Score. L3Harris Technologies M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, see L3Harris Technologies Piotroski F Score and L3Harris Technologies Altman Z Score analysis.
  
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L3Harris Technologies Debt Current is fairly stable at the moment as compared to the past year. L3Harris Technologies reported Debt Current of 13 Million in 2021. Debt to Equity Ratio is likely to rise to 1.23 in 2022, whereas Total Debt is likely to drop slightly above 6.4 B in 2022.
At this time, it appears that L3Harris Technologies is an unlikely manipulator. The earnings manipulation may begin if L3Harris Technologies' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by L3Harris Technologies executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of L3Harris Technologies' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.58
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.89Focus
Asset Quality1.06Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.76Focus

L3Harris Technologies Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if L3Harris Technologies' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues19.2 B17.8 B
Significantly Up
Increasing
Stable
Selling General and Administrative Expense3.5 B3.3 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations2.9 B2.7 B
Significantly Up
Increasing
Very volatile
Depreciation Amortization and AccretionB967 M
Significantly Up
Decreasing
Stable
Total Assets37.4 B34.7 B
Significantly Up
Decreasing
Stable
Investments10.6 M10.3 M
Fairly Up
Decreasing
Slightly volatile
Investments Current10.6 M10.3 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net3.1 B2.9 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade ReceivablesBB
Sufficiently Down
Decreasing
Slightly volatile
Total Liabilities12.5 B15.4 B
Significantly Down
Decreasing
Slightly volatile
Current Assets5.2 B6.4 B
Significantly Down
Decreasing
Slightly volatile
Assets Non Current30.6 B28.4 B
Significantly Up
Decreasing
Stable
Current Liabilities3.7 B4.6 B
Significantly Down
Decreasing
Stable
Liabilities Non Current8.9 B10.8 B
Significantly Down
Decreasing
Slightly volatile
Total Debt6.4 B7.8 B
Significantly Down
Decreasing
Slightly volatile
Debt Current13.3 M13 M
Fairly Up
Increasing
Slightly volatile
Debt Non Current6.3 B7.8 B
Significantly Down
Decreasing
Slightly volatile
Operating Income1.6 B1.9 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.30.302
Slightly Down
Increasing
Slightly volatile

L3Harris Technologies Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between L3Harris Technologies' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards L3Harris Technologies in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find L3Harris Technologies' degree of accounting gimmicks and manipulations.

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About L3Harris Technologies Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze L3Harris Technologies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of L3Harris Technologies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of L3Harris Technologies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
L3Harris Technologies, Inc., an aerospace and defense technology company, provides mission-critical solutions for government and commercial customers worldwide. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida. L3Harris Technologies operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 47000 people.

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Additionally, see L3Harris Technologies Piotroski F Score and L3Harris Technologies Altman Z Score analysis. Note that the L3Harris Technologies information on this page should be used as a complementary analysis to other L3Harris Technologies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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Is L3Harris Technologies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of L3Harris Technologies. If investors know L3Harris will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about L3Harris Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of L3Harris Technologies is measured differently than its book value, which is the value of L3Harris that is recorded on the company's balance sheet. Investors also form their own opinion of L3Harris Technologies' value that differs from its market value or its book value, called intrinsic value, which is L3Harris Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because L3Harris Technologies' market value can be influenced by many factors that don't directly affect L3Harris Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between L3Harris Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine L3Harris Technologies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, L3Harris Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.