Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

RTX Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal	443)	213)	1,724)	387)	324)
State	179)	70)	126)	60)	45)
United States	622)	283)	1,850)	447)	369)
Foreign	606)	575)	513)	427)	305)
Current	1,228)	858)	2,363)	874)	674)
Federal	(13)	(411)	(1,399)	(26)	(264)
State	71)	(53)	(166)	41)	258)
United States	58)	(464)	(1,565)	15)	(6)
Foreign	(105)	62)	(98)	(103)	(93)
Future	(47)	(402)	(1,663)	(88)	(99)
Income tax expense	1,181)	456)	700)	786)	575)

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).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	RTX Corp. current decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Future	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	RTX Corp. future increased from 2022 to 2023 and from 2023 to 2024.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	RTX Corp. income tax expense decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

RTX Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Statutory U.S. federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Tax on international activities	0.10%	-0.70%	-3.10%	-4.10%	-1.10%
Tax charges related to separation of Carrier and Otis and Raytheon merger	0.00%	0.00%	0.00%	-0.80%	-17.70%
Disposals of businesses	2.00%	0.00%	0.00%	2.20%	-7.50%
U.S. research and development credit	-3.00%	-4.40%	-2.70%	-3.50%	6.10%
U.S. federal audit settlements and statute lapse	-4.50%	-1.50%	0.00%	0.00%	0.00%
Goodwill impairment	0.00%	0.00%	0.00%	0.00%	-28.40%
State income tax, net	3.00%	0.40%	-0.20%	0.70%	2.40%
Foreign Derived Intangible Income (FDII)	-2.00%	-3.70%	-3.50%	-2.50%	3.50%
Non-deductible legal charges	2.40%	0.10%	0.00%	0.00%	0.00%
U.K. corporate tax rate enactment	0.00%	0.00%	0.00%	1.50%	-0.40%
Other	0.10%	0.70%	0.10%	1.40%	-2.30%
Effective income tax rate	19.10%	11.90%	11.60%	15.90%	-24.40%

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).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	RTX Corp. effective income tax rate increased from 2022 to 2023 and from 2023 to 2024.

RTX Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Insurance and employee benefits	897)	994)	1,126)	1,831)	3,004)
Inventory and contract balances	—)	571)	639)	756)	822)
Warranty provisions	221)	240)	242)	248)	220)
Capitalization of research and experimental expenditures	2,208)	1,631)	1,712)	—)	—)
Other basis differences	1,060)	779)	828)	878)	637)
Powder Metal Matter	455)	644)	—)	—)	—)
Tax loss carryforwards	1,055)	905)	305)	251)	196)
Tax credit carryforwards	800)	891)	970)	1,088)	959)
Future income tax benefits, gross	6,696)	6,655)	5,822)	5,052)	5,838)
Valuation allowances	(1,439)	(1,465)	(842)	(825)	(757)
Future income tax benefits, net	5,257)	5,190)	4,980)	4,227)	5,081)
Goodwill and intangible assets	(5,675)	(6,228)	(6,588)	(7,168)	(7,786)
Fixed assets	(1,614)	(1,739)	(1,751)	(1,746)	(1,637)
Inventory and contract balances	(193)	—)	—)	—)	—)
Other basis differences	(627)	(238)	(220)	(323)	(151)
Future income tax payable	(8,109)	(8,205)	(8,559)	(9,237)	(9,574)
Future income tax benefits and payable, net	(2,852)	(3,015)	(3,579)	(5,010)	(4,493)

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).

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Item	Description	The company
Future income tax benefits, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	RTX Corp. future income tax benefits, gross increased from 2022 to 2023 and from 2023 to 2024.
Future income tax benefits, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	RTX Corp. future income tax benefits, net increased from 2022 to 2023 and from 2023 to 2024.
Future income tax benefits and payable, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	RTX Corp. future income tax benefits and payable, net increased from 2022 to 2023 and from 2023 to 2024.

RTX Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Future income taxes payable	2,852)	3,015)	3,579)	5,010)	4,493)

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).

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Item	Description	The company
Future income taxes payable	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	RTX Corp. future income taxes payable decreased from 2022 to 2023 and from 2023 to 2024.

RTX Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Liabilities
Total liabilities (as reported)	100,903)	100,424)	84,650)	86,705)	88,269)
Less: Noncurrent deferred tax liabilities, net	2,852)	3,015)	3,579)	5,010)	4,493)
Total liabilities (adjusted)	98,051)	97,409)	81,071)	81,695)	83,776)
Adjustment to Shareowners’ Equity
Shareowners’ equity (as reported)	60,156)	59,798)	72,632)	73,068)	72,163)
Less: Net deferred tax assets (liabilities)	(2,852)	(3,015)	(3,579)	(5,010)	(4,493)
Shareowners’ equity (adjusted)	63,008)	62,813)	76,211)	78,078)	76,656)
Adjustment to Net Income (loss) Attributable To Common Shareowners
Net income (loss) attributable to common shareowners (as reported)	4,774)	3,195)	5,197)	3,864)	(3,519)
Add: Deferred income tax expense (benefit)	(47)	(402)	(1,663)	(88)	(99)
Net income (loss) attributable to common shareowners (adjusted)	4,727)	2,793)	3,534)	3,776)	(3,618)

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).

RTX Corp., Financial Data: Reported vs. Adjusted

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RTX Corp., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	5.91%	4.64%	7.75%	6.00%	-6.22%
Adjusted net profit margin	5.85%	4.05%	5.27%	5.86%	-6.39%
Financial Leverage
Reported financial leverage	2.71	2.71	2.19	2.21	2.25
Adjusted financial leverage	2.58	2.58	2.08	2.07	2.12
Return on Equity (ROE)
Reported ROE	7.94%	5.34%	7.16%	5.29%	-4.88%
Adjusted ROE	7.50%	4.45%	4.64%	4.84%	-4.72%
Return on Assets (ROA)
Reported ROA	2.93%	1.97%	3.27%	2.39%	-2.17%
Adjusted ROA	2.90%	1.73%	2.22%	2.34%	-2.23%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	RTX Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
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 increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	RTX Corp. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	RTX Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

RTX Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	4,774)	3,195)	5,197)	3,864)	(3,519)
Net sales	80,738)	68,920)	67,074)	64,388)	56,587)
Profitability Ratio
Net profit margin¹	5.91%	4.64%	7.75%	6.00%	-6.22%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	4,727)	2,793)	3,534)	3,776)	(3,618)
Net sales	80,738)	68,920)	67,074)	64,388)	56,587)
Profitability Ratio
Adjusted net profit margin²	5.85%	4.05%	5.27%	5.86%	-6.39%

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).

2024 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 4,774 ÷ 80,738 = 5.91%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 4,727 ÷ 80,738 = 5.85%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	RTX Corp. adjusted net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	162,861)	161,869)	158,864)	161,404)	162,153)
Shareowners’ equity	60,156)	59,798)	72,632)	73,068)	72,163)
Solvency Ratio
Financial leverage¹	2.71	2.71	2.19	2.21	2.25
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets	162,861)	161,869)	158,864)	161,404)	162,153)
Adjusted shareowners’ equity	63,008)	62,813)	76,211)	78,078)	76,656)
Solvency Ratio
Adjusted financial leverage²	2.58	2.58	2.08	2.07	2.12

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareowners’ equity
= 162,861 ÷ 60,156 = 2.71

² Adjusted financial leverage = Total assets ÷ Adjusted shareowners’ equity
= 162,861 ÷ 63,008 = 2.58

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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 increased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	4,774)	3,195)	5,197)	3,864)	(3,519)
Shareowners’ equity	60,156)	59,798)	72,632)	73,068)	72,163)
Profitability Ratio
ROE¹	7.94%	5.34%	7.16%	5.29%	-4.88%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	4,727)	2,793)	3,534)	3,776)	(3,618)
Adjusted shareowners’ equity	63,008)	62,813)	76,211)	78,078)	76,656)
Profitability Ratio
Adjusted ROE²	7.50%	4.45%	4.64%	4.84%	-4.72%

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).

2024 Calculations

¹ ROE = 100 × Net income (loss) attributable to common shareowners ÷ Shareowners’ equity
= 100 × 4,774 ÷ 60,156 = 7.94%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Adjusted shareowners’ equity
= 100 × 4,727 ÷ 63,008 = 7.50%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	RTX Corp. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	4,774)	3,195)	5,197)	3,864)	(3,519)
Total assets	162,861)	161,869)	158,864)	161,404)	162,153)
Profitability Ratio
ROA¹	2.93%	1.97%	3.27%	2.39%	-2.17%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	4,727)	2,793)	3,534)	3,776)	(3,618)
Total assets	162,861)	161,869)	158,864)	161,404)	162,153)
Profitability Ratio
Adjusted ROA²	2.90%	1.73%	2.22%	2.34%	-2.23%

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).

2024 Calculations

¹ ROA = 100 × Net income (loss) attributable to common shareowners ÷ Total assets
= 100 × 4,774 ÷ 162,861 = 2.93%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Total assets
= 100 × 4,727 ÷ 162,861 = 2.90%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	RTX Corp. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

RTX Corp. (NYSE:RTX)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

RTX Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

RTX Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)