Raytheon Technologies Corp (RTX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 68,920,000 | 67,074,000 | 64,388,000 | 56,587,000 | 45,349,000 |
| Property, plant and equipment | US$ in thousands | 15,748,000 | 15,170,000 | 14,972,000 | 14,962,000 | 10,322,000 |
| Fixed asset turnover | 4.38 | 4.42 | 4.30 | 3.78 | 4.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $68,920,000K ÷ $15,748,000K
= 4.38
Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of RTX Corp, the fixed asset turnover has fluctuated over the past five years.
In 2023, the fixed asset turnover ratio was 4.38, slightly lower than the previous year at 4.42. This indicates that RTX Corp generated $4.38 in revenue for every $1 of fixed assets it owns. The decline in fixed asset turnover may suggest a slight decrease in efficiency in utilizing fixed assets to generate sales.
Comparing to 2021 and 2020 where the ratios were 4.30 and 3.78 respectively, there has been an overall improvement in the efficiency of fixed asset utilization. However, in 2019, the ratio was significantly higher at 6.04, indicating a more efficient utilization of fixed assets to generate revenue.
Overall, RTX Corp has shown some fluctuation in its fixed asset turnover ratio over the years. Further analysis of operational and strategic changes within the company may provide insights into the factors driving these fluctuations.
Peer comparison
Dec 31, 2023