Raytheon Technologies Corp (RTX)
Total asset 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 |
| Total assets | US$ in thousands | 162,861,000 | 161,869,000 | 158,864,000 | 161,404,000 | 162,153,000 |
| Total asset turnover | 0.50 | 0.43 | 0.42 | 0.40 | 0.35 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $80,738,000K ÷ $162,861,000K
= 0.50
Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue relative to its total assets. In the case of Raytheon Technologies Corp, we observe a gradual improvement in total asset turnover over the past five years.
As of December 31, 2020, the total asset turnover stood at 0.35, indicating that for each dollar of assets, Raytheon Technologies generated $0.35 in revenue. Over the subsequent years, there was a positive trend in total asset turnover, reaching 0.50 by December 31, 2024. This suggests that the company has been able to utilize its assets more effectively to generate revenue over time.
The increase in total asset turnover signifies improved efficiency in utilizing the company's assets to drive sales and operations. It indicates that Raytheon Technologies has been able to optimize its asset utilization and improve operational performance, which can be a positive indicator of financial health and management effectiveness.
Peer comparison
Dec 31, 2024