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

Company name
Symbol
Working capital turnover
Raytheon Technologies Corp
RTX
41.62
Honeywell International Inc
HON
7.38

See also:

Raytheon Technologies Corp Working Capital Turnover (Quarterly Data)