Raytheon Technologies Corp (RTX)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 718.30 | 787.87 | 772.32 | 722.76 | 695.12 | 723.16 | 729.94 | 723.04 | 676.18 | 646.93 | 632.68 | 596.04 | 571.47 | 185.48 | 115.50 | 84.86 | 71.48 | 83.73 | 97.46 | 120.85 |
| Days of sales outstanding (DSO) | days | 49.62 | 46.63 | 51.67 | 52.84 | 57.40 | 54.72 | 51.22 | 53.60 | 49.56 | 51.04 | 58.11 | 51.08 | 54.77 | 54.60 | 52.22 | 60.58 | 59.69 | 71.19 | 71.48 | 104.53 |
| Number of days of payables | days | 725.56 | 692.44 | 647.54 | 613.99 | 631.43 | 619.04 | 616.22 | 642.17 | 630.26 | 558.59 | 607.11 | 505.62 | 544.88 | 170.55 | 97.29 | 82.04 | 65.62 | 69.27 | 68.25 | 115.28 |
| Cash conversion cycle | days | 42.36 | 142.06 | 176.46 | 161.61 | 121.08 | 158.85 | 164.93 | 134.47 | 95.48 | 139.38 | 83.69 | 141.51 | 81.35 | 69.53 | 70.42 | 63.40 | 65.55 | 85.65 | 100.69 | 110.10 |
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 exhibited fluctuations over the provided historical period. Initially, the company's cash conversion cycle stood at 110.10 days as of March 31, 2020, indicating a relatively lengthy period required to convert investments in inventory and other resources back into cash.
Subsequently, the trend shows a gradual improvement in the efficiency of the cycle, with the number of days decreasing by June 30, 2021, to 70.42 days. However, this positive trend was disrupted, seeing a significant surge in the cash conversion cycle to 141.51 days by March 31, 2022, pointing to potential challenges in managing working capital effectively.
Although there was some recovery with a decrease to 95.48 days by December 31, 2022, fluctuations continued to be observed, with spikes and drops in the period between March 31, 2023, and June 30, 2024. Particularly noteworthy is the notable reduction to 42.36 days by December 31, 2024, signifying a potential enhancement in the company's cash flow management efficiency.
Overall, the data demonstrates the importance of monitoring and managing the cash conversion cycle closely to ensure smooth operations and liquidity management within Raytheon Technologies Corp.
Peer comparison
Dec 31, 2024
See also:
Raytheon Technologies Corp Cash Conversion Cycle (Quarterly Data)