Raytheon Technologies Corp (RTX)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 7.36 | 7.83 | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | 6.66 | 6.69 | 6.99 | 6.03 | 6.11 | 5.13 | 5.11 | 3.49 | |
| DSO | days | 49.62 | 46.63 | 51.67 | 52.84 | 57.40 | 54.72 | 51.22 | 53.60 | 49.56 | 51.04 | 58.11 | 51.08 | 54.77 | 54.60 | 52.22 | 60.58 | 59.69 | 71.19 | 71.48 | 104.53 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.36
= 49.62
Raytheon Technologies Corp's Days Sales Outstanding (DSO) has demonstrated a downward trend over the specified time period, indicating an improvement in the company's ability to collect its accounts receivable efficiently. From March 31, 2020, where the DSO was reported at 104.53 days, to December 31, 2024, where the DSO declined to 49.62 days, there has been a consistent decrease in the number of days it takes for the company to convert its sales into cash.
The reduction in DSO signifies that Raytheon Technologies Corp has been managing its receivables more effectively, potentially as a result of improved credit management policies or better customer payment terms. A lower DSO suggests that the company is collecting payments from customers at a faster rate, which can positively impact cash flow and liquidity.
Although there have been fluctuations in the DSO figures over the quarters, overall, the decreasing trend is favorable and indicates an enhancement in the company's accounts receivable management efficiency. Continuously monitoring and analyzing the DSO metric can provide valuable insights into Raytheon Technologies Corp's working capital management and financial performance.
Peer comparison
Dec 31, 2024
See also:
Raytheon Technologies Corp Average Receivable Collection Period (Quarterly Data)