Raytheon Technologies Corp (RTX)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 0.52 | 0.54 | 0.64 | 5.11 | 3.82 | |
| DOH | days | 703.08 | 676.18 | 571.47 | 71.48 | 95.44 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.52
= 703.08
The days of inventory on hand (DOH) for RTX Corp has shown a fluctuating trend over the past five years. In 2023, the DOH increased to 75.64 days from 72.56 days in 2022, indicating that the company held inventory for a slightly longer period. This rise follows a similar pattern observed in 2020 when the DOH was 71.48 days, suggesting a potential buildup of inventory levels.
Comparing these figures to 2021 and 2019, where the DOH was 64.55 days and 70.04 days respectively, it can be inferred that RTX Corp experienced a significant increase in its days of inventory on hand in 2023. A higher DOH may indicate slower inventory turnover and potential inefficiencies in managing inventory levels, which could tie up working capital and lead to increased carrying costs.
Further analysis is required to understand the underlying reasons for the increase in DOH and evaluate its impact on the company's overall operations and financial performance.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Average Inventory Processing Period