Raytheon Technologies Corp (RTX)

Receivables 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
Revenue (ttm) US$ in thousands 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 45,349,000 51,699,000 56,836,000 62,212,000
Receivables US$ in thousands 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 8,743,000 13,607,000 13,695,000 13,574,000
Receivables turnover 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 5.19 3.80 4.15 4.58

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $68,920,000K ÷ $10,838,000K
= 6.36

The receivables turnover of RTX Corp has shown fluctuations over the past eight quarters, ranging from a low of 6.28 in Q2 2022 to a high of 7.36 in Q4 2022. The average receivables turnover ratio during this period is approximately 6.92.

Overall, RTX Corp has been able to efficiently convert its accounts receivable into cash within an average of around 53 days (365 days divided by 6.92 receivables turnover ratio). A higher receivables turnover ratio typically indicates more effective credit and collection policies, reflecting the company's ability to quickly collect payments from its customers.

The fluctuations in the receivables turnover ratio over time may be influenced by various factors such as changes in sales volumes, credit terms, customer payment behavior, and economic conditions. It is important for RTX Corp to closely monitor and manage its accounts receivable turnover to ensure optimal working capital management and sustainable cash flow.


Peer comparison

Dec 31, 2023

Company name
Symbol
Receivables turnover
Raytheon Technologies Corp
RTX
6.36
Honeywell International Inc
HON
4.87

See also:

Raytheon Technologies Corp Receivables Turnover (Quarterly Data)