RTX Corp. (NYSE:RTX)

The composition of assets at RTX Corp. demonstrates notable shifts between 2021 and 2025. A significant trend is the increasing proportion of current assets relative to total assets, while the share of long-term assets declines over the same period. Within current assets, accounts receivable and contract assets exhibit consistent growth, while cash and cash equivalents fluctuate modestly.

Liquidity and Current Assets

Current assets as a percentage of total assets increased from 26.05% in 2021 to 35.27% in 2025. This indicates a growing proportion of assets are readily convertible to cash. The increase is primarily driven by growth in accounts receivable, net (from 5.99% to 8.59%) and contract assets, net (from 7.04% to 9.99%). Cash and cash equivalents experienced a slight decrease initially, recovering to 4.35% in 2025, but remaining below the 2021 level. Other current assets also show a steady increase.

Long-Term Asset Composition

Long-term assets decreased as a percentage of total assets, moving from 73.95% in 2021 to 64.73% in 2025. Goodwill represents the largest component of long-term assets, but its proportion of the total asset base decreased from 33.73% to 31.18%. Intangible assets, net also experienced a consistent decline, falling from 23.86% to 18.61%. Fixed assets, net remained relatively stable, fluctuating between 9.28% and 9.88%. Customer financing assets show a steady, albeit small, decrease.

The shift in asset allocation suggests a potential strategic change towards shorter-term investments or increased operational activity requiring higher levels of working capital. The decline in goodwill and intangible assets could be due to impairment charges, amortization, or strategic divestitures. The growth in receivables and contract assets warrants further investigation to assess the efficiency of collections and revenue recognition practices.

Other Asset Trends

Other assets, both current and non-current, demonstrate modest increases and decreases respectively. The increase in current other assets suggests a growing investment in short-term, less-defined assets. The decrease in long-term other assets may indicate the disposal of certain long-term investments or a reclassification of assets.

Overall, the asset composition indicates a company transitioning towards a more liquid position with a decreasing reliance on long-term intangible assets. Continued monitoring of these trends is recommended to understand the underlying drivers and potential implications for future financial performance.