Raytheon Technologies Corp (RTX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 80,738,000 | 68,920,000 | 67,074,000 | 64,388,000 | 56,587,000 |
| Receivables | US$ in thousands | 10,976,000 | 10,838,000 | 9,108,000 | 9,661,000 | 9,254,000 |
| Receivables turnover | 7.36 | 6.36 | 7.36 | 6.66 | 6.11 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $80,738,000K ÷ $10,976,000K
= 7.36
Raytheon Technologies Corp's receivables turnover has shown a positive trend over the past five years, increasing from 6.11 in December 31, 2020, to 7.36 in December 31, 2022, and 2024. This indicates that the company is collecting its accounts receivable more efficiently, on average, each year.
However, there was a slight dip in the receivables turnover from 2022 to 2023, dropping to 6.36. This could suggest a temporary delay in collecting payments from customers during that period.
Overall, the company's increasing receivables turnover shows that it is managing its accounts receivable effectively, converting credit sales into cash at a faster rate. This efficiency in collecting receivables is important for maintaining healthy cash flows and liquidity within the business.
Peer comparison
Dec 31, 2024