Raytheon Technologies Corp (RTX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,114,000 | 5,731,000 | 5,862,000 | 48,056,000 | 34,598,000 |
| Inventory | US$ in thousands | 11,777,000 | 10,617,000 | 9,178,000 | 9,411,000 | 9,047,000 |
| Inventory turnover | 0.52 | 0.54 | 0.64 | 5.11 | 3.82 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $6,114,000K ÷ $11,777,000K
= 0.52
RTX Corp's inventory turnover has shown a fluctuating trend over the past five years. The ratio decreased from 5.21 in 2019 to 5.11 in 2020, before slightly improving to 5.65 in 2021. However, in 2022 and 2023, the inventory turnover further decreased to 5.03 and 4.83 respectively. This indicates that RTX Corp took longer to sell its inventory in 2023 compared to previous years. A decreasing inventory turnover may suggest inefficiencies in inventory management or challenges in selling products, which could potentially lead to excess or obsolete inventory. Further analysis of the company's operations and industry trends is recommended to better understand the factors driving the changes in inventory turnover.
Peer comparison
Dec 31, 2023