Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

RTX Corp., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	53,699)	53,840)	54,436)	54,285)	48,063)
Service portfolios	—)	—)	—)	—)	2,105)
Collaboration assets	5,810)	5,536)	5,319)	5,021)	4,862)
Exclusivity assets	3,460)	2,911)	2,673)	2,541)	—)
Developed technology and other	1,219)	1,202)	1,214)	954)	23,566)
Customer relationships	29,605)	29,775)	29,982)	30,241)	—)
Amortized intangible assets, gross amount	40,094)	39,424)	39,188)	38,757)	30,533)
Accumulated amortization	(13,358)	(11,242)	(9,368)	(6,932)	(8,403)
Amortized intangible assets, net	26,736)	28,182)	29,820)	31,825)	22,130)
Trademarks and other	8,663)	8,641)	8,696)	8,714)	3,916)
Indefinite-lived intangible assets	8,663)	8,641)	8,696)	8,714)	3,916)
Identifiable intangible assets	35,399)	36,823)	38,516)	40,539)	26,046)
Goodwill and intangible assets	89,098)	90,663)	92,952)	94,824)	74,109)

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).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	RTX Corp. goodwill decreased from 2021 to 2022 and from 2022 to 2023.
Identifiable intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	RTX Corp. identifiable intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	RTX Corp. goodwill and intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

RTX Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	161,869)	158,864)	161,404)	162,153)	139,716)
Less: Goodwill	53,699)	53,840)	54,436)	54,285)	48,063)
Total assets (adjusted)	108,170)	105,024)	106,968)	107,868)	91,653)
Adjustment to Shareowners’ Equity
Shareowners’ equity (as reported)	59,798)	72,632)	73,068)	72,163)	41,774)
Less: Goodwill	53,699)	53,840)	54,436)	54,285)	48,063)
Shareowners’ equity (adjusted)	6,099)	18,792)	18,632)	17,878)	(6,289)
Adjustment to Net Income (loss) Attributable To Common Shareowners
Net income (loss) attributable to common shareowners (as reported)	3,195)	5,197)	3,864)	(3,519)	5,537)
Add: Goodwill impairment charge	—)	—)	—)	3,183)	—)
Net income (loss) attributable to common shareowners (adjusted)	3,195)	5,197)	3,864)	(336)	5,537)

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).

RTX Corp., Financial Data: Reported vs. Adjusted

Download chart

RTX Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	4.64%	7.75%	6.00%	-6.22%	7.19%
Adjusted net profit margin	4.64%	7.75%	6.00%	-0.59%	7.19%
Total Asset Turnover
Reported total asset turnover	0.43	0.42	0.40	0.35	0.55
Adjusted total asset turnover	0.64	0.64	0.60	0.52	0.84
Financial Leverage
Reported financial leverage	2.71	2.19	2.21	2.25	3.34
Adjusted financial leverage	17.74	5.59	5.74	6.03	—
Return on Equity (ROE)
Reported ROE	5.34%	7.16%	5.29%	-4.88%	13.25%
Adjusted ROE	52.39%	27.66%	20.74%	-1.88%	—
Return on Assets (ROA)
Reported ROA	1.97%	3.27%	2.39%	-2.17%	3.96%
Adjusted ROA	2.95%	4.95%	3.61%	-0.31%	6.04%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	RTX Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	RTX Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	RTX Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	RTX Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	RTX Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

RTX Corp., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Profitability Ratio
Net profit margin¹	4.64%	7.75%	6.00%	-6.22%	7.19%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(336)	5,537)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Profitability Ratio
Adjusted net profit margin²	4.64%	7.75%	6.00%	-0.59%	7.19%

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).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 3,195 ÷ 68,920 = 4.64%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 3,195 ÷ 68,920 = 4.64%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	RTX Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Total assets	161,869)	158,864)	161,404)	162,153)	139,716)
Activity Ratio
Total asset turnover¹	0.43	0.42	0.40	0.35	0.55
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Adjusted total assets	108,170)	105,024)	106,968)	107,868)	91,653)
Activity Ratio
Adjusted total asset turnover²	0.64	0.64	0.60	0.52	0.84

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).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 68,920 ÷ 161,869 = 0.43

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 68,920 ÷ 108,170 = 0.64

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	RTX Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	161,869)	158,864)	161,404)	162,153)	139,716)
Shareowners’ equity	59,798)	72,632)	73,068)	72,163)	41,774)
Solvency Ratio
Financial leverage¹	2.71	2.19	2.21	2.25	3.34
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	108,170)	105,024)	106,968)	107,868)	91,653)
Adjusted shareowners’ equity	6,099)	18,792)	18,632)	17,878)	(6,289)
Solvency Ratio
Adjusted financial leverage²	17.74	5.59	5.74	6.03	—

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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareowners’ equity
= 161,869 ÷ 59,798 = 2.71

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareowners’ equity
= 108,170 ÷ 6,099 = 17.74

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	RTX Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Shareowners’ equity	59,798)	72,632)	73,068)	72,163)	41,774)
Profitability Ratio
ROE¹	5.34%	7.16%	5.29%	-4.88%	13.25%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(336)	5,537)
Adjusted shareowners’ equity	6,099)	18,792)	18,632)	17,878)	(6,289)
Profitability Ratio
Adjusted ROE²	52.39%	27.66%	20.74%	-1.88%	—

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).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to common shareowners ÷ Shareowners’ equity
= 100 × 3,195 ÷ 59,798 = 5.34%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Adjusted shareowners’ equity
= 100 × 3,195 ÷ 6,099 = 52.39%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	RTX Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Total assets	161,869)	158,864)	161,404)	162,153)	139,716)
Profitability Ratio
ROA¹	1.97%	3.27%	2.39%	-2.17%	3.96%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(336)	5,537)
Adjusted total assets	108,170)	105,024)	106,968)	107,868)	91,653)
Profitability Ratio
Adjusted ROA²	2.95%	4.95%	3.61%	-0.31%	6.04%

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).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to common shareowners ÷ Total assets
= 100 × 3,195 ÷ 161,869 = 1.97%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Adjusted total assets
= 100 × 3,195 ÷ 108,170 = 2.95%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	RTX Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

RTX Corp. (NYSE:RTX)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

RTX Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

RTX Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)