Raytheon Technologies Corp (RTX)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.50 | 0.57 | 0.58 | 0.67 | 5.56 | |
| Number of days of payables | days | 725.56 | 638.66 | 630.26 | 544.88 | 65.62 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.50
= 725.56
The number of days of payables for Raytheon Technologies Corp has shown a significant upward trend over the past five years based on the provided data. Starting at 65.62 days as of December 31, 2020, the number of days of payables has increased substantially to 725.56 days as of December 31, 2024.
This upward trend indicates that Raytheon Technologies Corp is taking increasingly longer to pay off its trade payables over the years. A higher number of days of payables may sometimes suggest that the company is stretching its payment terms with suppliers, potentially indicating cash flow management strategies or liquidity challenges.
It is essential for investors and stakeholders to closely monitor this trend to understand the company's working capital management, vendor relationships, and overall financial health. The significant increase in the number of days of payables warrants further investigation into the company's payment practices and the reasons behind this prolonged payment cycle.
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Dec 31, 2024