Raytheon Technologies Corp (RTX)
Days of sales outstanding (DSO)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 5.19 | 3.80 | 4.15 | 4.58 | |
| DSO | days | 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 | 70.37 | 96.07 | 87.95 | 79.64 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.36
= 57.40
To analyze RTX Corp's Days of Sales Outstanding (DSO) over the past eight quarters, we calculate the average DSO for the period. The average DSO for RTX Corp is approximately 53.67 days.
The trend indicates that RTX Corp's DSO has been relatively stable over the period, with minor fluctuations between 49.56 days and 58.11 days. Q2 2022 and Q4 2023 had the lowest and highest DSO, respectively.
A DSO of 53.67 days suggests that, on average, RTX Corp takes around 53.67 days to collect its accounts receivable. This metric is crucial as it reflects the efficiency of the company in collecting payments from customers. Lower DSO values typically indicate faster collections and better liquidity management, while higher DSO values may point to potential issues with credit policies or difficulties in collecting payments.
In conclusion, RTX Corp's DSO has remained relatively stable over the past eight quarters, hovering around the average of 53.67 days. It is essential for the company to monitor and manage its DSO effectively to maintain healthy cash flows and working capital management.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Average Receivable Collection Period (Quarterly Data)