Financial statement analysis and common stock valuation

Analysis of Revenues

Analysis of Geographic Areas

RTX Corp. operates in 5 regions: United States; Europe; Asia Pacific; Middle East and North Africa; and Other regions.

• Area Asset Turnover
• External net sales
• Long-lived assets

Aggregate Accruals

Financial reporting quality relates to the accuracy with which RTX Corp. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of RTX Corp. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Analysis of Reportable Segments

RTX Corp. operates in 3 segments: Collins Aerospace; Pratt & Whitney; and Raytheon.

• Segment Profit Margin
• Segment Return on Assets (Segment ROA)
• Segment Asset Turnover
• Segment Capital Expenditures to Depreciation
• Net sales
• Operating profit (loss)
• Total assets
• Capital expenditures
• Depreciation & amortization

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a RTX Corp. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Cash Flow Statement

The cash flow statement provides information about RTX Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on RTX Corp. balance sheet.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Present Value of Free Cash Flow to Equity (FCFE)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• FCFE Growth Rate (g)

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.