Stock Analysis on Net

RTX Corp. (NYSE:RTX)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

RTX Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 4.83 5.03 5.65 5.11 5.21
Receivables turnover 6.36 7.36 6.66 6.11 5.70
Payables turnover 5.31 5.40 5.93 5.56 5.28
Working capital turnover 41.62 20.15 9.75 7.52 26.47
Average No. Days
Average inventory processing period 76 73 65 71 70
Add: Average receivable collection period 57 50 55 60 64
Operating cycle 133 123 120 131 134
Less: Average payables payment period 69 68 62 66 69
Cash conversion cycle 64 55 58 65 65

Based on: 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), 10-K (reporting date: 2019-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. RTX Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. RTX Corp. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. RTX Corp. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.
Working capital turnover An activity ratio calculated as revenue divided by working capital. RTX Corp. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. RTX Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. RTX Corp. number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. RTX Corp. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. RTX Corp. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. RTX Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Inventory Turnover

RTX Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 56,831 53,406 51,897 48,056 57,065
Inventory, net 11,777 10,617 9,178 9,411 10,950
Short-term Activity Ratio
Inventory turnover1 4.83 5.03 5.65 5.11 5.21
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.88 0.81 0.75 0.78 0.94
Caterpillar Inc. 2.58 2.54 2.53 2.55 3.25
Cummins Inc. 4.55 3.81 4.21 4.36 5.05
General Electric Co. 3.05 3.19 3.40 3.80 4.74
Honeywell International Inc. 3.72 4.04 4.29 4.94 5.51
Lockheed Martin Corp. 18.87 18.68 19.45 16.01 14.22
Inventory Turnover, Sector
Capital Goods 2.35 2.30 2.29 2.27 2.62
Inventory Turnover, Industry
Industrials 3.92 3.98 3.87 3.60 3.95

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Inventory turnover = Cost of sales ÷ Inventory, net
= 56,831 ÷ 11,777 = 4.83

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. RTX Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

RTX Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net sales 68,920 67,074 64,388 56,587 77,046
Accounts receivable, net 10,838 9,108 9,661 9,254 13,524
Short-term Activity Ratio
Receivables turnover1 6.36 7.36 6.66 6.11 5.70
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 29.37 26.46 23.58 29.75 23.44
Caterpillar Inc. 6.86 6.39 5.68 5.33 5.92
Cummins Inc. 6.10 5.40 6.02 5.19 6.42
General Electric Co. 4.17 4.09 4.55 4.37 5.22
Honeywell International Inc. 4.87 4.77 5.04 4.78 4.90
Lockheed Martin Corp. 31.69 26.34 34.15 33.06 25.59
Receivables Turnover, Sector
Capital Goods 7.73 7.34 7.55 7.20 7.41
Receivables Turnover, Industry
Industrials 8.16 7.79 7.59 7.42 7.67

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable, net
= 68,920 ÷ 10,838 = 6.36

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. RTX Corp. receivables turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Payables Turnover

RTX Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cost of sales 56,831 53,406 51,897 48,056 57,065
Accounts payable 10,698 9,896 8,751 8,639 10,809
Short-term Activity Ratio
Payables turnover1 5.31 5.40 5.93 5.56 5.28
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 5.86 6.18 6.40 4.94 4.63
Caterpillar Inc. 5.41 4.76 4.36 4.75 6.15
Cummins Inc. 6.06 5.02 6.07 5.29 6.94
General Electric Co. 3.27 2.98 3.32 3.67 4.20
Honeywell International Inc. 3.36 3.53 3.40 3.86 4.25
Lockheed Martin Corp. 25.56 27.25 74.34 64.48 40.16
Payables Turnover, Sector
Capital Goods 5.52 5.24 5.67 5.51 5.64
Payables Turnover, Industry
Industrials 7.80 7.56 7.79 7.38 7.40

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 56,831 ÷ 10,698 = 5.31

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. RTX Corp. payables turnover ratio decreased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

RTX Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 48,417 42,443 42,050 43,376 37,497
Less: Current liabilities 46,761 39,114 35,449 35,848 34,586
Working capital 1,656 3,329 6,601 7,528 2,911
 
Net sales 68,920 67,074 64,388 56,587 77,046
Short-term Activity Ratio
Working capital turnover1 41.62 20.15 9.75 7.52 26.47
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 5.78 3.42 2.34 1.69 15.57
Caterpillar Inc. 5.23 4.62 3.54 2.84 4.04
Cummins Inc. 14.84 9.27 4.60 3.56 7.54
General Electric Co. 7.24 7.93 4.94 2.26 7.03
Honeywell International Inc. 7.39 7.03 5.86 3.64 5.92
Lockheed Martin Corp. 18.85 12.93 11.52 12.01 19.15
Working Capital Turnover, Sector
Capital Goods 8.78 6.84 4.75 3.19 9.09
Working Capital Turnover, Industry
Industrials 11.98 9.68 6.57 4.40 10.12

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 68,920 ÷ 1,656 = 41.62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. RTX Corp. working capital turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Average Inventory Processing Period

RTX Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 4.83 5.03 5.65 5.11 5.21
Short-term Activity Ratio (no. days)
Average inventory processing period1 76 73 65 71 70
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 415 452 486 467 388
Caterpillar Inc. 141 144 144 143 112
Cummins Inc. 80 96 87 84 72
General Electric Co. 120 114 107 96 77
Honeywell International Inc. 98 90 85 74 66
Lockheed Martin Corp. 19 20 19 23 26
Average Inventory Processing Period, Sector
Capital Goods 155 158 159 161 139
Average Inventory Processing Period, Industry
Industrials 93 92 94 101 92

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.83 = 76

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. RTX Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

RTX Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 6.36 7.36 6.66 6.11 5.70
Short-term Activity Ratio (no. days)
Average receivable collection period1 57 50 55 60 64
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 12 14 15 12 16
Caterpillar Inc. 53 57 64 68 62
Cummins Inc. 60 68 61 70 57
General Electric Co. 87 89 80 83 70
Honeywell International Inc. 75 77 72 76 75
Lockheed Martin Corp. 12 14 11 11 14
Average Receivable Collection Period, Sector
Capital Goods 47 50 48 51 49
Average Receivable Collection Period, Industry
Industrials 45 47 48 49 48

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.36 = 57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. RTX Corp. number of days of receivables outstanding improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Operating Cycle

RTX Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 76 73 65 71 70
Average receivable collection period 57 50 55 60 64
Short-term Activity Ratio
Operating cycle1 133 123 120 131 134
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 427 466 501 479 404
Caterpillar Inc. 194 201 208 211 174
Cummins Inc. 140 164 148 154 129
General Electric Co. 207 203 187 179 147
Honeywell International Inc. 173 167 157 150 141
Lockheed Martin Corp. 31 34 30 34 40
Operating Cycle, Sector
Capital Goods 202 208 207 212 188
Operating Cycle, Industry
Industrials 138 139 142 150 140

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 76 + 57 = 133

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. RTX Corp. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

RTX Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 5.31 5.40 5.93 5.56 5.28
Short-term Activity Ratio (no. days)
Average payables payment period1 69 68 62 66 69
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 62 59 57 74 79
Caterpillar Inc. 67 77 84 77 59
Cummins Inc. 60 73 60 69 53
General Electric Co. 112 123 110 100 87
Honeywell International Inc. 109 103 107 95 86
Lockheed Martin Corp. 14 13 5 6 9
Average Payables Payment Period, Sector
Capital Goods 66 70 64 66 65
Average Payables Payment Period, Industry
Industrials 47 48 47 49 49

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.31 = 69

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. RTX Corp. number of days of payables outstanding increased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

RTX Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 76 73 65 71 70
Average receivable collection period 57 50 55 60 64
Average payables payment period 69 68 62 66 69
Short-term Activity Ratio
Cash conversion cycle1 64 55 58 65 65
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 365 407 444 405 325
Caterpillar Inc. 127 124 124 134 115
Cummins Inc. 80 91 88 85 76
General Electric Co. 95 80 77 79 60
Honeywell International Inc. 64 64 50 55 55
Lockheed Martin Corp. 17 21 25 28 31
Cash Conversion Cycle, Sector
Capital Goods 136 138 143 146 123
Cash Conversion Cycle, Industry
Industrials 91 91 95 101 91

Based on: 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), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 76 + 5769 = 64

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. RTX Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.