Raytheon Technologies Corp (RTX)
Payables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 34,598,000 | 39,229,000 | 43,256,000 | 47,124,000 |
| Payables | US$ in thousands | 10,698,000 | 10,315,000 | 10,128,000 | 10,060,000 | 9,896,000 | 9,017,000 | 9,732,000 | 8,270,000 | 8,751,000 | 8,667,000 | 8,043,000 | 9,182,000 | 8,639,000 | 8,143,000 | 7,182,000 | 10,976,000 | 7,816,000 | 10,840,000 | 11,109,000 | 10,364,000 |
| Payables turnover | 0.58 | 0.59 | 0.59 | 0.57 | 0.58 | 0.65 | 0.60 | 0.72 | 0.67 | 2.14 | 3.75 | 4.45 | 5.56 | 5.27 | 5.35 | 3.17 | 4.43 | 3.62 | 3.89 | 4.55 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $6,184,000K ÷ $10,698,000K
= 0.58
To analyze RTX Corp's payables turnover, we can observe a fluctuating trend over the past eight quarters. The payables turnover ratio measures how efficiently a company manages its payments to suppliers. A higher ratio typically indicates that the company is paying its suppliers more frequently within a given period.
In Q1 2022, RTX Corp had a payables turnover of 6.28, which was the highest among the listed quarters, suggesting that the company was paying its suppliers at a relatively faster rate during that period. However, in subsequent quarters, the payables turnover ratio started to decrease, reaching a low of 5.31 in Q4 2023.
The declining trend in payables turnover could indicate that RTX Corp is taking longer to settle its payables to suppliers. This may be due to various reasons such as changes in the company's payment terms, cash flow constraints, or renegotiation of supplier agreements.
Overall, RTX Corp's payables turnover ratio has fluctuated over the past eight quarters, signaling potential changes in the company's management of payables and relationships with suppliers. Further analysis of the company's financial statements and operational activities may provide additional insights into the factors driving these fluctuations.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Payables Turnover (Quarterly Data)