Raytheon Technologies Corp (RTX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 80,738,000 | 68,920,000 | 67,074,000 | 64,388,000 | 56,587,000 |
| Property, plant and equipment | US$ in thousands | 16,089,000 | 15,748,000 | 15,170,000 | 14,972,000 | 14,962,000 |
| Fixed asset turnover | 5.02 | 4.38 | 4.42 | 4.30 | 3.78 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $80,738,000K ÷ $16,089,000K
= 5.02
Based on the provided data, Raytheon Technologies Corp's fixed asset turnover has been showing a positive trend over the past five years. The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its investments in fixed assets.
In December 2020, the fixed asset turnover ratio stood at 3.78, indicating that for each unit invested in fixed assets, the company generated $3.78 in sales. This ratio increased to 4.30 by December 2021, suggesting an improvement in asset utilization. The trend continued with ratios of 4.42 in 2022, 4.38 in 2023, and 5.02 in 2024.
The consistent increase in the fixed asset turnover ratio reflects the company's ability to use its fixed assets more efficiently to generate sales revenue. A higher fixed asset turnover ratio generally indicates better asset utilization and operational performance. Raytheon Technologies Corp's improving fixed asset turnover implies that the company is effectively managing and utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024