Raytheon Technologies Corp (RTX)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 80,738,000 | 79,042,000 | 72,417,000 | 71,011,000 | 68,920,000 | 67,086,000 | 70,573,000 | 68,572,000 | 67,074,000 | 66,025,000 | 65,287,000 | 64,853,000 | 64,388,000 | 63,763,000 | 62,297,000 | 60,478,000 | 56,587,000 | 51,862,000 | 48,488,000 | 45,756,000 |
| Receivables | US$ in thousands | 10,976,000 | 10,097,000 | 10,252,000 | 10,280,000 | 10,838,000 | 10,058,000 | 9,903,000 | 10,069,000 | 9,108,000 | 9,233,000 | 10,394,000 | 9,076,000 | 9,661,000 | 9,538,000 | 8,912,000 | 10,037,000 | 9,254,000 | 10,115,000 | 9,496,000 | 13,104,000 |
| 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $80,738,000K ÷ $10,976,000K
= 7.36
The receivables turnover ratio measures how efficiently a company is able to convert its accounts receivable into cash. For Raytheon Technologies Corp, the receivables turnover ratio has shown a generally increasing trend over the past few years, starting at 3.49 in March 2020 and reaching 7.36 by December 2024.
A higher receivables turnover ratio indicates that the company is collecting its outstanding receivables more quickly, which is a positive sign of effective credit and collection policies. Raytheon's increasing trend in receivables turnover suggests that the company has been managing its accounts receivable effectively and efficiently.
However, it is important to note that a very high receivables turnover ratio could also indicate a very stringent credit policy that may lead to lost sales opportunities. Therefore, it is essential for the company to strike a balance between efficient collection of receivables and maintaining good customer relationships.
In conclusion, based on the receivables turnover data provided, Raytheon Technologies Corp has shown an improvement in its efficiency in collecting accounts receivable over the years, which is a positive indicator of effective management of its working capital.
Peer comparison
Dec 31, 2024
See also:
Raytheon Technologies Corp Receivables Turnover (Quarterly Data)