Raytheon Technologies Corp (RTX)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 68,920,000 | 67,074,000 | 64,388,000 | 56,587,000 | 45,349,000 |
| Receivables | US$ in thousands | 10,838,000 | 9,108,000 | 9,661,000 | 9,254,000 | 8,743,000 |
| Receivables turnover | 6.36 | 7.36 | 6.66 | 6.11 | 5.19 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $68,920,000K ÷ $10,838,000K
= 6.36
The trend in RTX Corp's receivables turnover ratio over the past five years shows a general fluctuation, with values ranging from 5.70 to 7.36. The receivables turnover ratio measures how efficiently the company is collecting its accounts receivables during the year.
In 2023, RTX Corp's receivables turnover ratio decreased to 6.36 from 7.36 in 2022. This decrease could indicate that the company took longer to collect its accounts receivables in 2023 compared to the previous year, which may potentially raise concerns about the company's credit policies or the quality of its customers.
However, the receivables turnover ratio in 2023 is still relatively high compared to 2019 and 2020, indicating that RTX Corp is generally efficient in collecting its receivables. This efficiency is important for maintaining healthy cash flow and ensuring that the company is not overly reliant on unpaid invoices.
Overall, although there was a slight decrease in the receivables turnover ratio in 2023, RTX Corp's historical performance suggests that it has managed its receivables effectively over the years. Further analysis and comparison with industry benchmarks could provide additional insights into the company's receivables management practices.
Peer comparison
Dec 31, 2023