Raytheon Technologies Corp (RTX)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	7.36	7.83	7.06	6.91	6.36	6.67	7.13	6.81	7.36	7.15	6.28	7.15	6.66	6.69	6.99	6.03	6.11	5.13	5.11	3.49
Payables turnover	0.50	0.53	0.56	0.59	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
Working capital turnover	—	—	—	23.64	41.62	44.25	16.99	12.76	20.15	19.15	17.77	11.41	9.75	8.11	10.24	9.77	7.52	6.52	6.94	6.21

Raytheon Technologies Corp's inventory turnover ratio has been steadily declining from 3.02 in March 2020 to 0.51 in December 2024. This indicates that the company is selling its inventory less frequently over time, which may suggest issues with managing inventory efficiently.

On the other hand, the receivables turnover ratio has been relatively stable, ranging from 3.49 in March 2020 to 7.83 in September 2024. This indicates that the company is collecting its receivables at a fairly consistent rate, which is a positive sign for its cash flow management.

In terms of payables turnover, the ratio has also been decreasing, signaling that the company is taking longer to pay its suppliers over time. This could indicate potential cash flow problems or strained relationships with suppliers.

The working capital turnover ratio has shown significant fluctuations, reaching a peak of 44.25 in September 2023. This suggests that the company is effectively utilizing its working capital to generate sales but may also indicate a need to closely monitor and manage its working capital levels in order to sustain this level of activity.

Overall, Raytheon Technologies Corp's activity ratios reflect varying trends in inventory management, receivables collection, payables payment, and working capital utilization, highlighting areas that may require attention to ensure efficient operations and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	718.30	787.87	772.32	722.76	695.12	723.16	729.94	723.04	676.18	646.93	632.68	596.04	571.47	185.48	115.50	84.86	71.48	83.73	97.46	120.85
Days of sales outstanding (DSO)	days	49.62	46.63	51.67	52.84	57.40	54.72	51.22	53.60	49.56	51.04	58.11	51.08	54.77	54.60	52.22	60.58	59.69	71.19	71.48	104.53
Number of days of payables	days	725.56	692.44	647.54	613.99	631.43	619.04	616.22	642.17	630.26	558.59	607.11	505.62	544.88	170.55	97.29	82.04	65.62	69.27	68.25	115.28

Raytheon Technologies Corp's activity ratios, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, have shown significant fluctuations over the periods from March 31, 2020, to December 31, 2024.

1. Days of Inventory on Hand (DOH): This ratio measures how many days it takes for the company to sell its inventory. Raytheon's DOH has increased steadily from 120.85 days on March 31, 2020, to 718.30 days on December 31, 2024. The substantial rise in the DOH over the years indicates that Raytheon has been holding inventory for longer periods, which may suggest inefficiencies in inventory management or a slowdown in sales.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes for a company to collect payments after making a sale. Raytheon's DSO has shown some fluctuations but generally improved from 104.53 days on March 31, 2020, to 49.62 days on December 31, 2024. The decreasing trend in DSO indicates that Raytheon has been more efficient in collecting payments from customers, which is a positive sign for cash flow management.

3. Number of Days of Payables: This ratio indicates the number of days it takes for a company to pay its suppliers. Raytheon's payables days have fluctuated significantly over the periods, ranging from 68.25 days on June 30, 2020, to 725.56 days on December 31, 2024. The substantial increase in payables days suggests that Raytheon has been taking longer to pay its suppliers, which could be a strategy to manage cash flow or negotiate more favorable payment terms.

Overall, Raytheon's activity ratios reflect mixed performance in managing inventory, collecting receivables, and paying suppliers over the analyzed periods. It would be important for Raytheon to continue monitoring and improving these ratios to ensure efficient working capital management and overall financial health.

Long-term

	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
Fixed asset turnover	5.02	4.98	4.61	4.54	4.38	4.37	4.61	4.53	4.42	4.50	4.43	4.37	4.30	4.39	4.25	4.10	3.78	3.52	3.28	3.67
Total asset turnover	0.50	0.48	0.45	0.44	0.43	0.41	0.44	0.42	0.42	0.42	0.41	0.41	0.40	0.40	0.39	0.38	0.35	0.32	0.30	0.33

Raytheon Technologies Corp's long-term activity ratios indicate efficient utilization of its fixed assets and total assets over the years.

1. Fixed Asset Turnover:
- Raytheon's fixed asset turnover has improved steadily from 3.67 in March 2020 to 5.02 in December 2024.
- This indicates that the company generated $4.42 to $5.02 in sales for every dollar invested in fixed assets during this period.
- The increasing trend suggests that Raytheon has been able to utilize its fixed assets more efficiently to drive revenue growth.

2. Total Asset Turnover:
- The total asset turnover ratio has also shown a positive trend, increasing from 0.33 in March 2020 to 0.50 in December 2024.
- This indicates that the company has been more effective in generating revenue from its total assets as the ratio shows the turnover of sales in relation to its total assets.
- The increasing trend signifies that Raytheon has been able to generate more revenue relative to its asset base, reflecting improved efficiency in asset utilization.

Overall, the upward trajectory of both fixed asset turnover and total asset turnover ratios for Raytheon Technologies Corp indicates effective management of assets to drive sales growth.