Raytheon Technologies Corp (RTX)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 6,488,000 | 6,114,000 | 5,731,000 | 5,862,000 | 48,056,000 |
| Payables | US$ in thousands | 12,897,000 | 10,698,000 | 9,896,000 | 8,751,000 | 8,639,000 |
| Payables turnover | 0.50 | 0.57 | 0.58 | 0.67 | 5.56 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $6,488,000K ÷ $12,897,000K
= 0.50
The payables turnover ratio for Raytheon Technologies Corp has shown a downward trend over the years. In December 31, 2020, the payables turnover ratio was relatively high at 5.56, indicating that the company was able to efficiently manage its accounts payable by paying off its suppliers multiple times within the year.
However, in the following years, the payables turnover ratio steadily decreased. By December 31, 2024, the ratio had decreased significantly to 0.50, suggesting that the company took longer to pay off its suppliers' invoices compared to the previous years.
A declining payables turnover ratio may indicate a potential liquidity issue or a change in the company's payment policies. It is essential for Raytheon Technologies Corp to monitor its payables turnover ratio closely and assess the impact on its working capital management and relationships with suppliers.
Peer comparison
Dec 31, 2024