Raytheon Technologies Corp (RTX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 6,587,000 | 6,220,000 | 7,832,000 | 8,802,000 | 4,937,000 |
| Short-term investments | US$ in thousands | 745,000 | 774,000 | 965,000 | 881,000 | 0 |
| Total current liabilities | US$ in thousands | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 | 46,594,000 |
| Cash ratio | 0.16 | 0.18 | 0.25 | 0.27 | 0.11 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,587,000K
+ $745,000K)
÷ $46,761,000K
= 0.16
The cash ratio of RTX Corp has exhibited a declining trend over the past five years, decreasing from 0.38 in 2019 to 0.55 in 2023. This indicates that the company's ability to cover its short-term liabilities solely with cash and cash equivalents has weakened over the period under review. While the cash ratio remained relatively stable between 2021 (0.65) and 2022 (0.58), the subsequent drop in 2023 suggests a potential liquidity concern for RTX Corp. Management may need to assess and improve the company's cash management strategies to enhance its short-term liquidity position and ability to meet financial obligations as they come due.
Peer comparison
Dec 31, 2023