Raytheon Technologies Corp (RTX)

The Days of Inventory on Hand (DOH) for Raytheon Technologies Corp have experienced a significant increase over the years. Starting at 71.48 days as of December 31, 2020, the DOH surged to 571.47 days by December 31, 2021, and continued to rise to 676.18 days by the end of 2022. Subsequently, the DOH reached 703.08 days by the end of 2023 and peaked at 718.30 days by December 31, 2024.

This trend indicates that Raytheon Technologies Corp has been carrying its inventory for a consistently longer period, which could suggest potential inefficiencies in inventory management. The substantial increase in the DOH values over the years may raise concerns about the company's ability to control and optimize its inventory levels effectively.

A high DOH value can tie up financial resources in inventory, leading to increased storage and holding costs. It may also indicate slower inventory turnover, potentially resulting in obsolete or expired inventory. Therefore, Raytheon Technologies Corp may need to review and improve its inventory management practices to enhance efficiency and reduce the risk associated with excessive inventory levels.

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Dec 31, 2024