Raytheon Technologies Corp (RTX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.36 | 7.36 | 6.66 | 6.11 | 5.19 | |
| DSO | days | 57.40 | 49.56 | 54.77 | 59.69 | 70.37 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.36
= 57.40
The Days of Sales Outstanding (DSO) metric for RTX Corp has demonstrated a fluctuating trend over the past five years. In 2023, the DSO stood at 57.40 days, showing an increase from the previous year's 49.56 days. This indicates that, on average, it took RTX Corp 57.40 days to collect its accounts receivable from customers in 2023.
Comparing this to the trend over the previous years, it is evident that the DSO improved in 2022 and 2021, standing at 49.56 days and 54.77 days respectively. This suggests that RTX Corp managed to collect its receivables more efficiently in those years.
However, in 2020 and 2019, the DSO was higher at 59.69 days and 64.07 days, indicating a longer collection period for accounts receivable during those years.
Overall, RTX Corp should focus on monitoring and managing its DSO effectively to ensure a healthy cash flow and efficient management of receivables. Efforts to reduce DSO can lead to improved liquidity and working capital management for the company.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Average Receivable Collection Period