Raytheon Technologies Corp (RTX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 48,417,000 | 42,443,000 | 42,050,000 | 43,376,000 | 61,577,000 |
| Total current liabilities | US$ in thousands | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 | 46,594,000 |
| Current ratio | 1.04 | 1.09 | 1.19 | 1.21 | 1.32 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $48,417,000K ÷ $46,761,000K
= 1.04
The current ratio of RTX Corp has displayed fluctuations over the past five years. In 2023, the current ratio stood at 1.04, indicating that the company may have slightly less current assets to cover its current liabilities. This decrease from the previous year's ratio of 1.09 suggests a potential tightening of liquidity.
Comparing to 2021 and 2022, where the current ratios were 1.19 and 1.21 respectively, the recent decrease may raise concerns about RTX Corp's short-term liquidity position. However, the current ratio in 2023 remains above 1, indicating that the company still has sufficient current assets to meet its short-term obligations.
In 2019, the current ratio was 1.08, similar to the current ratio in 2023, suggesting that RTX Corp has previously managed its short-term liquidity at a comparable level. Overall, while the recent decrease in the current ratio warrants attention, the company's liquidity position appears stable and adequate to meet its short-term obligations.
Peer comparison
Dec 31, 2023