Raytheon Technologies Corp (RTX)

Liquidity ratios

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
Current ratio 1.04 1.03 1.10 1.13 1.09 1.09 1.10 1.16 1.19 1.23 1.17 1.17 1.21 1.22 1.20 1.23 1.32 1.06 1.05 1.13
Quick ratio 0.39 0.36 0.38 0.42 0.41 0.40 0.42 0.46 0.52 0.53 0.49 0.54 0.53 0.57 0.47 0.67 0.29 0.59 0.58 0.63
Cash ratio 0.16 0.14 0.15 0.16 0.18 0.16 0.15 0.20 0.25 0.25 0.23 0.26 0.27 0.28 0.20 0.25 0.11 0.21 0.19 0.20

RTX Corp's liquidity ratios have shown some fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has ranged from 1.03 to 1.16. The values have generally been above 1, indicating that RTX Corp has had sufficient current assets to cover its current liabilities during this period.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. RTX Corp's quick ratio has fluctuated between 0.77 and 0.88. While the values have generally been lower than the current ratio, they still suggest that the company has been able to meet its short-term obligations without relying heavily on inventory.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has fluctuated between 0.54 and 0.63 for RTX Corp. Despite some variability, the cash ratio has generally remained at a moderate level, indicating that the company has had a reasonable amount of cash on hand to meet its immediate liabilities.

Overall, RTX Corp's liquidity ratios suggest that the company has maintained a reasonable level of liquidity over the past eight quarters, with the current ratio consistently above 1 and the quick and cash ratios showing acceptable levels of liquidity. However, management should continue to monitor these ratios to ensure that the company remains well-positioned to meet its short-term obligations.

See also:

Raytheon Technologies Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
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

The cash conversion cycle of RTX Corp has shown fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle was 64.33 days, slightly lower than in the previous quarter. This indicates that RTX Corp took approximately 64 days to convert its investments in inventory and accounts receivable into cash.

Comparing to the previous quarters, the cash conversion cycle has shown a gradual increase from Q1 to Q3 2023, reaching a peak of 66.15 days before slightly decreasing in Q4 2023. The longer the cash conversion cycle, the longer the company's operating cycle, which can tie up cash and increase the risk of liquidity problems.

On a year-over-year basis, the cash conversion cycle has increased from 54.49 days in Q4 2022 to 64.33 days in Q4 2023. This trend suggests that RTX Corp may be facing challenges in efficiently managing its inventory, collecting receivables, and paying its payables within a shorter timeframe.

Overall, RTX Corp should focus on optimizing its cash conversion cycle by improving inventory management, accelerating accounts receivable collection, and efficiently managing payables to enhance cash flow and liquidity position.