Raytheon Technologies Corp (RTX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,587,000 | 6,220,000 | 7,832,000 | 8,802,000 | 4,937,000 |
| Short-term investments | US$ in thousands | 745,000 | 774,000 | 965,000 | 881,000 | 0 |
| Receivables | US$ in thousands | 10,838,000 | 9,108,000 | 9,661,000 | 9,254,000 | 8,743,000 |
| Total current liabilities | US$ in thousands | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 | 46,594,000 |
| Quick ratio | 0.39 | 0.41 | 0.52 | 0.53 | 0.29 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,587,000K
+ $745,000K
+ $10,838,000K)
÷ $46,761,000K
= 0.39
The quick ratio of RTX Corp has shown some fluctuation over the past five years, ranging from 0.77 in 2019 to 0.95 in 2020. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2023, the quick ratio decreased to 0.78 from 0.81 in 2022, indicating a slight deterioration in the company's short-term liquidity position. This decrease may raise concerns about RTX Corp's ability to cover its current liabilities with its quick assets.
On the positive side, the quick ratios observed in 2021 and 2020 were relatively healthier at 0.93 and 0.95, respectively. These ratios suggest that the company had a stronger ability to meet its short-term obligations with its liquid assets during those years.
Overall, RTX Corp should continue to monitor and manage its liquidity position to ensure it can efficiently cover its short-term obligations and maintain financial stability.
Peer comparison
Dec 31, 2023