Analysis of Inventory
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- Income Statement
- Balance Sheet: Assets
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Inventory Disclosure
RTX Corp., balance sheet: inventory
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Raw materials | |||||||||||
| Work-in-process | |||||||||||
| Finished goods | |||||||||||
| Inventory, net |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data over the five-year period demonstrates a consistent upward trend across all inventory categories, indicating growth in the company's inventory holdings.
- Raw Materials
- The value of raw materials increased steadily from $3,015 million in 2020 to $4,164 million in 2024. This represents a cumulative increase of approximately 38%, reflecting either increased procurement or accumulation of raw inventory over the period.
- Work-in-Process
- Work-in-process inventory also showed continuous growth, rising from $2,924 million in 2020 to $4,493 million in 2024, which corresponds to more than a 53% increase. This suggests an expansion in ongoing production activities or longer production cycles.
- Finished Goods
- The finished goods inventory exhibited a similar upward trajectory, growing from $3,472 million in 2020 to $4,111 million in 2024, an increase of around 18.4%. The initial dip in 2021 was followed by steady increases through 2024, indicating a possible recovery or changes in inventory management strategy for finished products.
- Inventory, Net
- The aggregate inventory value increased from $9,411 million in 2020 to $12,768 million in 2024, representing a growth of approximately 35.6%. This trend aligns with the increases observed in the individual inventory components and underscores an overall expansion in inventory levels.
In summary, the company's inventory levels have generally increased over the five-year period, with work-in-process inventory showing the most significant relative growth. The growth in inventory might indicate higher production volumes or stockpiling strategies. The substantial increase in inventory, particularly in raw materials and work-in-process, warrants attention regarding inventory turnover and potential impacts on liquidity and supply chain efficiency.