Raytheon Technologies Corp (RTX)
Working capital 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 current assets | US$ in thousands | 48,417,000 | 42,443,000 | 42,050,000 | 43,376,000 | 61,577,000 |
| Total current liabilities | US$ in thousands | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 | 46,594,000 |
| Working capital turnover | 41.62 | 20.15 | 9.75 | 7.52 | 3.03 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $68,920,000K ÷ ($48,417,000K – $46,761,000K)
= 41.62
RTX Corp's working capital turnover has shown a significant upward trend over the past five years, indicating an improvement in the company's efficiency in utilizing its working capital to generate sales. The ratio increased from 26.47 in 2019 to 41.62 in 2023, reflecting a steady increase in the turnover of working capital over this period.
This improvement suggests that RTX Corp has been able to efficiently manage its current assets and liabilities to support revenue generation. A higher working capital turnover ratio indicates that the company is more effective in converting its working capital into sales.
Overall, the progressive increase in the working capital turnover ratio for RTX Corp signifies a positive trend in the company's operational efficiency and financial performance during the analyzed period.
Peer comparison
Dec 31, 2023