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
See also:
Raytheon Technologies Corp Receivables Turnover (Quarterly Data)