Raytheon Technologies Corp (RTX)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 718.30 | 703.08 | 676.18 | 571.47 | 71.48 |
| Days of sales outstanding (DSO) | days | 49.62 | 57.40 | 49.56 | 54.77 | 59.69 |
| Number of days of payables | days | 725.56 | 638.66 | 630.26 | 544.88 | 65.62 |
| Cash conversion cycle | days | 42.36 | 121.81 | 95.48 | 81.35 | 65.55 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 718.30 + 49.62 – 725.56
= 42.36
The cash conversion cycle of Raytheon Technologies Corp has displayed fluctuations over the years. It increased from 65.55 days as of December 31, 2020, to 81.35 days by December 31, 2021. This upward trend continued with a further rise to 95.48 days by December 31, 2022, indicating a lengthening cycle.
By December 31, 2023, the cash conversion cycle significantly extended to 121.81 days, suggesting potential challenges in managing the company's cash flow and liquidity. However, there was a notable improvement by December 31, 2024, with the cycle decreasing to 42.36 days, signaling a more efficient cash conversion process during that period.
Overall, Raytheon Technologies Corp experienced fluctuations in its cash conversion cycle over the years, with the company facing challenges in effectively managing its working capital and cash flow operations, as indicated by the varying cycle lengths. It will be important for the company to focus on optimizing its cash conversion process to enhance operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2024