Raytheon Technologies Corp (RTX)

Liquidity ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Current ratio 0.99 0.99 0.99 1.07 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
Quick ratio 0.34 0.34 0.34 0.37 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
Cash ratio 0.12 0.14 0.14 0.14 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

Raytheon Technologies Corp has shown a gradual decline in its current ratio over the quarters, from 1.23 on March 31, 2020, to 0.99 on December 31, 2024. This indicates a potential weakening of the company's ability to cover its short-term obligations with its current assets.

The quick ratio, which excludes inventory from current assets, has also been on a downward trend, decreasing from 0.67 on March 31, 2020, to 0.34 on December 31, 2024. This suggests that the company may face difficulty meeting its immediate liabilities without relying on inventory turnover.

Furthermore, the cash ratio has also shown a decreasing pattern, declining from 0.25 on March 31, 2020, to 0.12 on December 31, 2024. This indicates that Raytheon Technologies Corp may have a lower ability to pay off its current liabilities solely with cash and cash equivalents.

Overall, the liquidity ratios of Raytheon Technologies Corp reflect a deteriorating liquidity position over the quarters, which may raise concerns about the company's short-term financial flexibility and ability to meet its obligations promptly.

See also:

Raytheon Technologies Corp Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash conversion cycle days 42.36 142.06 176.46 161.61 121.08 158.85 164.93 134.47 95.48 139.38 83.69 141.51 81.35 69.53 70.42 63.40 65.55 85.65 100.69 110.10

The cash conversion cycle for Raytheon Technologies Corp has shown some fluctuations over the periods analyzed. The cycle started at 110.10 days on March 31, 2020, indicating that it took the company that long to convert its investments in raw materials into cash receipts from sales of finished goods.

The trend then saw some improvements as the cycle decreased to 63.40 days by March 31, 2021, suggesting a more efficient management of working capital. However, there was an increase in the cycle to 164.93 days by June 30, 2023, indicating some challenges in converting investments into cash efficiently.

Subsequently, there was a significant decrease to 42.36 days by December 31, 2024, which may indicate a more streamlined process in managing inventory, accounts receivable, and payable. This reduction may suggest improved liquidity and efficiency in the company's operations during that period.

Overall, analyzing the cash conversion cycle provides insights into how effectively Raytheon Technologies Corp manages its working capital and cash flow operations to support its business activities and financial performance.