Raytheon Technologies Corp (RTX)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 6,488,000 | 6,238,000 | 6,166,000 | 6,255,000 | 6,184,000 | 6,082,000 | 5,999,000 | 5,718,000 | 5,731,000 | 5,892,000 | 5,851,000 | 5,970,000 | 5,862,000 | 18,549,000 | 30,174,000 | 40,852,000 | 48,056,000 | 42,906,000 | 38,411,000 | 34,751,000 |
| Inventory | US$ in thousands | 12,768,000 | 13,465,000 | 13,047,000 | 12,386,000 | 11,777,000 | 12,050,000 | 11,997,000 | 11,327,000 | 10,617,000 | 10,443,000 | 10,142,000 | 9,749,000 | 9,178,000 | 9,426,000 | 9,548,000 | 9,498,000 | 9,411,000 | 9,843,000 | 10,256,000 | 11,506,000 |
| Inventory turnover | 0.51 | 0.46 | 0.47 | 0.51 | 0.53 | 0.50 | 0.50 | 0.50 | 0.54 | 0.56 | 0.58 | 0.61 | 0.64 | 1.97 | 3.16 | 4.30 | 5.11 | 4.36 | 3.75 | 3.02 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,488,000K ÷ $12,768,000K
= 0.51
The inventory turnover ratio of Raytheon Technologies Corp has exhibited a declining trend over the past few years, starting at 3.02 in March 31, 2020 and dropping to 0.51 by December 31, 2024. This indicates that the company is managing its inventory less efficiently over time, as it is taking longer to sell its inventory.
A high inventory turnover ratio is generally preferred as it signifies that inventory is being sold quickly, reducing the risk of obsolescence and freeing up cash for the company. Conversely, a low inventory turnover ratio may suggest excess or obsolete inventory, which ties up capital and may lead to carrying costs and potential write-offs.
Raytheon Technologies Corp should closely monitor and address the declining trend in its inventory turnover to optimize its inventory management practices and improve overall efficiency and profitability.
Peer comparison
Dec 31, 2024
Dec 31, 2024
See also:
Raytheon Technologies Corp Inventory Turnover (Quarterly Data)