Raytheon Technologies Corp (RTX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 68,920,000 | 67,074,000 | 64,388,000 | 56,587,000 | 45,349,000 |
| Total assets | US$ in thousands | 161,869,000 | 158,864,000 | 161,404,000 | 162,153,000 | 139,615,000 |
| Total asset turnover | 0.43 | 0.42 | 0.40 | 0.35 | 0.32 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $68,920,000K ÷ $161,869,000K
= 0.43
The total asset turnover of RTX Corp has shown a fluctuating trend over the last five years. The company's ability to generate sales revenue relative to its total assets has varied between 0.35 to 0.55 during this period.
In 2019, the total asset turnover was relatively high at 0.55, indicating that RTX Corp generated more sales revenue for each dollar of total assets compared to the following years. However, there was a significant decrease in 2020 when the total asset turnover dropped to 0.35, suggesting a decrease in efficiency in asset utilization to generate sales.
Subsequently, there was a modest increase in the total asset turnover in 2021 and 2022, reaching 0.40 and 0.42, respectively. This uptrend indicates some improvement in the company's ability to generate sales revenue per dollar of total assets.
In the most recent year, 2023, the total asset turnover slightly increased to 0.43, showing a continued positive trend in asset utilization efficiency for revenue generation. It is essential for RTX Corp to monitor and potentially improve its total asset turnover consistently to ensure optimal utilization of assets in generating sales revenue.
Peer comparison
Dec 31, 2023