Raytheon Technologies Corp (RTX)
Days of inventory on hand (DOH)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.51 | 0.46 | 0.47 | 0.51 | 0.53 | 0.50 | 0.50 | 0.50 | 0.54 | 0.56 | 0.58 | 0.61 | 0.64 | 1.97 | 3.16 | 4.30 | 5.11 | 4.36 | 3.75 | 3.02 | |
| DOH | days | 718.30 | 787.87 | 772.32 | 722.76 | 695.12 | 723.16 | 729.94 | 723.04 | 676.18 | 646.93 | 632.68 | 596.04 | 571.47 | 185.48 | 115.50 | 84.86 | 71.48 | 83.73 | 97.46 | 120.85 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.51
= 718.30
Raytheon Technologies Corp's Days of Inventory on Hand (DOH) has displayed significant fluctuations over the period from March 31, 2020, to December 31, 2024. Initially, the DOH stood at 120.85 days in March 2020, gradually decreasing to 71.48 days by December 2020. This decline indicated an improvement in the company's inventory management efficiency.
However, starting from March 31, 2021, the DOH began to increase again, reaching 676.18 days by December 31, 2022. This substantial increase suggests that Raytheon Technologies Corp may be facing challenges in managing its inventory effectively, which could lead to potential issues such as excess inventory or obsolete stock.
The DOH continued to fluctuate slightly in the subsequent periods, with a peak of 787.87 days on September 30, 2024. Such high levels of DOH could indicate inefficiencies in inventory turnover, tying up a significant amount of capital in inventory that could have been used more productively elsewhere.
Overall, the fluctuation in Raytheon Technologies Corp's DOH highlights the importance of closely monitoring and optimizing inventory management practices to ensure efficient operations and financial performance.
Peer comparison
Dec 31, 2024
See also:
Raytheon Technologies Corp Average Inventory Processing Period (Quarterly Data)