Raytheon Technologies Corp (RTX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,578,000 | 6,587,000 | 6,220,000 | 7,832,000 | 8,802,000 |
| Short-term investments | US$ in thousands | 786,000 | 745,000 | 774,000 | 965,000 | 881,000 |
| Total current liabilities | US$ in thousands | 51,499,000 | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 |
| Cash ratio | 0.12 | 0.16 | 0.18 | 0.25 | 0.27 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,578,000K
+ $786,000K)
÷ $51,499,000K
= 0.12
The cash ratio for Raytheon Technologies Corp has exhibited a declining trend over the years, decreasing from 0.27 as of December 31, 2020, to 0.12 as of December 31, 2024. This ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A lower cash ratio suggests a reduced capacity to settle immediate obligations with cash on hand. Raytheon Technologies Corp may need to evaluate its liquidity management strategies to ensure it maintains a healthy balance between cash reserves and short-term liabilities.
Peer comparison
Dec 31, 2024