Raytheon Technologies Corp (RTX)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 703.08 | 676.18 | 571.47 | 71.48 | 95.44 |
| Days of sales outstanding (DSO) | days | 57.40 | 49.56 | 54.77 | 59.69 | 70.37 |
| Number of days of payables | days | 638.66 | 630.26 | 544.88 | 65.62 | 82.46 |
| Cash conversion cycle | days | 121.81 | 95.48 | 81.35 | 65.55 | 83.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 703.08 + 57.40 – 638.66
= 121.81
The cash conversion cycle of RTX Corp has shown fluctuations over the past five years. In 2023, it increased to 64.33 days from 54.49 days in 2022. This indicates that the company took longer to convert its investments in inventory into cash during the most recent year. Although the cycle was longer in 2023 compared to the prior year, it was still lower than the 65.55 days in 2020. This suggests some improvement in managing working capital efficiency. However, the cycle in 2023 was slightly higher than the 57.77 days in 2021. Overall, the trend in the cash conversion cycle of RTX Corp has been somewhat volatile in recent years, indicating potential fluctuations in the company's ability to convert its resources into cash efficiently.
Peer comparison
Dec 31, 2023