Raytheon Technologies Corp (RTX)
Working capital 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 |
| Total current assets | US$ in thousands | 48,417,000 | 46,518,000 | 45,915,000 | 45,504,000 | 42,443,000 | 41,821,000 | 41,462,000 | 40,740,000 | 42,050,000 | 41,992,000 | 40,879,000 | 42,552,000 | 43,376,000 | 43,511,000 | 42,274,000 | 38,875,000 | 61,577,000 | 37,816,000 | 37,058,000 | 35,402,000 |
| Total current liabilities | US$ in thousands | 46,761,000 | 45,002,000 | 41,760,000 | 40,128,000 | 39,114,000 | 38,373,000 | 37,788,000 | 35,057,000 | 35,449,000 | 34,131,000 | 34,794,000 | 36,359,000 | 35,848,000 | 35,562,000 | 35,291,000 | 31,502,000 | 46,594,000 | 35,567,000 | 35,422,000 | 31,403,000 |
| Working capital turnover | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | 9.75 | 8.11 | 10.24 | 9.77 | 7.52 | 6.52 | 6.94 | 6.21 | 3.03 | 22.99 | 34.74 | 15.56 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $68,920,000K ÷ ($48,417,000K – $46,761,000K)
= 41.62
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. RTX Corp's working capital turnover has varied over the past eight quarters, ranging from 11.41 to 44.25. A higher working capital turnover ratio indicates that the company is generating more sales revenue per unit of working capital.
In Q4 2023, RTX Corp's working capital turnover was 41.62, slightly lower than the previous quarter's ratio of 44.25. This decrease may suggest that the company is experiencing challenges in efficiently utilizing its working capital to generate sales.
The highest working capital turnover ratio over the period was in Q3 2023 at 44.25, indicating that RTX Corp was able to generate a significant amount of sales revenue with its working capital during that quarter. On the other hand, the lowest ratio was in Q1 2022 at 11.41, suggesting that the company struggled to efficiently convert working capital into sales during that period.
Overall, fluctuations in the working capital turnover ratio can provide insights into RTX Corp's efficiency in managing its working capital and generating sales revenue. It would be important for the company to analyze the reasons behind these variations and take appropriate measures to improve its working capital utilization in the future.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Working Capital Turnover (Quarterly Data)