Raytheon Technologies Corp (RTX)

Cash conversion cycle

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
Days of inventory on hand (DOH) days 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 95.44 104.60 92.26 81.13
Days of sales outstanding (DSO) days 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 70.37 96.07 87.95 79.64
Number of days of payables days 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 82.46 100.86 93.74 80.27
Cash conversion cycle days 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 83.36 99.81 86.47 80.49

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 695.12 + 57.40 – 631.43
= 121.08

The cash conversion cycle of RTX Corp has shown some fluctuations over the past eight quarters, with values ranging from 54.49 days to 66.15 days. Generally, a lower cash conversion cycle indicates a more efficient management of working capital.

In the most recent quarter, Q4 2023, the cash conversion cycle was 64.33 days, a slight increase compared to Q3 2023. This increase suggests that the company took slightly longer to convert its investments in inventory and accounts receivable into cash during Q4 2023.

On a year-over-year basis, the cash conversion cycle has shown some variability with an overall increasing trend. It is important for RTX Corp's management to assess the reasons behind these fluctuations to ensure efficient management of working capital and to optimize cash flow. Further analysis of the components of the cash conversion cycle, such as inventory turnover and accounts receivable collection period, could provide insights into areas for improvement.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Raytheon Technologies Corp
RTX
121.08
Honeywell International Inc
HON
66.54

See also:

Raytheon Technologies Corp Cash Conversion Cycle (Quarterly Data)