Raytheon Technologies Corp (RTX)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 51,133,000 | 48,417,000 | 42,443,000 | 42,050,000 | 43,376,000 |
| Total current liabilities | US$ in thousands | 51,499,000 | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 |
| Current ratio | 0.99 | 1.04 | 1.09 | 1.19 | 1.21 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $51,133,000K ÷ $51,499,000K
= 0.99
The current ratio of Raytheon Technologies Corp has shown a gradual decline over the past five years, from 1.21 at the end of 2020 to 0.99 at the end of 2024. This downward trend indicates that the company's ability to meet its short-term obligations with its current assets has weakened over this period. A current ratio below 1 suggests that the company may have difficulty meeting its current liabilities with its current assets alone, which may raise concerns about its liquidity and ability to cover immediate financial obligations. Raytheon Technologies Corp should assess its current asset and current liability management strategies to improve its current ratio moving forward.
Peer comparison
Dec 31, 2024