Raytheon Technologies Corp (RTX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,578,000 | 6,587,000 | 6,220,000 | 7,832,000 | 8,802,000 |
| Short-term investments | US$ in thousands | 786,000 | 745,000 | 774,000 | 965,000 | 881,000 |
| Receivables | US$ in thousands | 10,976,000 | 10,838,000 | 9,108,000 | 9,661,000 | 9,254,000 |
| Total current liabilities | US$ in thousands | 51,499,000 | 46,761,000 | 39,114,000 | 35,449,000 | 35,848,000 |
| Quick ratio | 0.34 | 0.39 | 0.41 | 0.52 | 0.53 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,578,000K
+ $786,000K
+ $10,976,000K)
÷ $51,499,000K
= 0.34
The quick ratio of Raytheon Technologies Corp has exhibited a declining trend over the years. As of December 31, 2020, the quick ratio stood at 0.53, indicating that the company had $0.53 in liquid assets available to cover each $1 of current liabilities. Subsequently, the ratio decreased to 0.52 by December 31, 2021, and experienced a further decline to 0.41 by December 31, 2022.
By December 31, 2023, the quick ratio decreased even more to 0.39, signifying a potential strain on the company's ability to meet short-term obligations with its quick assets. Finally, as of December 31, 2024, the quick ratio dropped to 0.34, reflecting a diminishing financial liquidity position.
Overall, the decreasing trend in the quick ratio suggests that Raytheon Technologies Corp may be facing challenges in maintaining an adequate level of liquid assets to cover its short-term liabilities effectively. It implies a potential need for the company to enhance its liquidity management strategies to better weather short-term financial obligations.
Peer comparison
Dec 31, 2024