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
See also:
Raytheon Technologies Corp Cash Conversion Cycle (Quarterly Data)