RTX Corp. (NYSE:RTX)

Asset Turnover

The reported total asset turnover demonstrates a generally upward trend over the five-year period, rising from 0.35 in 2020 to 0.50 in 2024. The adjusted total asset turnover closely mirrors this pattern, increasing steadily from 0.35 to 0.49 by 2024. This indicates improved efficiency in utilizing assets to generate sales.

Liquidity Ratios

Both the reported and adjusted current ratios show a gradual decline from 2020 through 2024. The reported current ratio decreased from 1.21 to 0.99, while the adjusted current ratio dropped from 1.23 to 1.00. This downward trend suggests a slight reduction in short-term liquidity, with the company approaching a current ratio of 1, which often signals minimal working capital buffer.

Leverage Ratios

The reported debt to equity ratio remained relatively stable from 2020 to 2022, around 0.43-0.44, before increasing substantially to 0.73 in 2023 and slightly reducing to 0.69 in 2024. The adjusted debt to equity ratio follows a similar pattern, rising from 0.43 to 0.66 by 2024. The debt to capital ratios also rose significantly in 2023 compared to prior years, indicating increased leverage. Reported debt to capital went from about 0.30-0.31 pre-2023 to 0.42 in 2023 and 0.41 in 2024, mirrored by adjusted ratios. Financial leverage similarly increased markedly from near 2.2 in earlier years to 2.71 by 2023, remaining stable thereafter. Overall, these changes denote a notable increase in the company’s reliance on debt financing starting in 2023.

Profitability Metrics

Reported net profit margin shows recovery after a negative margin of -6.22% in 2020, reaching positive territory at 6.00% in 2021, then fluctuating with a dip to 4.64% in 2023 and a rebound to 5.91% in 2024. The adjusted net profit margin exhibits a similar recovery, moving from a slight negative in 2020 to a peak of 9.02% in 2021 before declining to 3.54% in 2023 and modestly rising to 4.46% in 2024. This pattern indicates improved profitability post-2020 with some volatility in recent years.

Return on Equity (ROE)

ROE follows an upward trend after a negative return of -4.88% in 2020, improving to 5.29% in 2021 and reaching around 7.94% by 2024 on a reported basis. The adjusted ROE also shows improvement from -0.25% in 2020 to 5.53% in 2024 but reflects more moderate gains and some variability after peaking in 2021. These figures suggest enhanced shareholder value generation over time despite some fluctuations.

Return on Assets (ROA)

Reported ROA recovered from -2.17% in 2020 to 2.93% in 2024, with a peak of 3.27% in 2022 before a drop in 2023. The adjusted ROA also rose from a negative starting point to 2.21% by 2024 but shows a less consistent trend after 2021. These returns align with the increasing asset turnover and improved profit margins, although the slight decline in 2023 suggests some challenges in asset efficiency or profitability during that year.

Over the analyzed periods, net sales of the entity demonstrated a consistent upward trajectory. Starting at approximately 56.6 billion US dollars in 2020, net sales increased steadily each year, reaching over 80.7 billion US dollars by the end of 2024. This growth indicates strengthening revenue generation capabilities.

Total assets showed a slight downward trend from 2020 through 2022, reaching a low point near 158.9 billion US dollars in 2022. However, in the subsequent years, total assets experienced a modest recovery, rising back to approximately 162.9 billion US dollars in 2024. This pattern reflects relatively stable asset levels with minor fluctuations.

The reported total asset turnover ratio, which measures the efficiency of asset utilization in generating sales, exhibited a steady improvement over the period. It rose from 0.35 in 2020 to 0.50 in 2024, indicating enhanced effectiveness in using assets to produce revenue. A similar trend is observed with the adjusted total asset turnover ratio, increasing from 0.35 to 0.49 over the same timeframe, although it slightly plateaued between 2022 and 2023.

The adjusted total assets mirrored the fluctuations observed in reported total assets, initially declining and then increasing towards 2024, albeit at slightly higher values than the reported figures. The adjustment appears to have had minimal impact on the turnover ratios, as both reported and adjusted figures follow the same general trend.

Net Sales

Consistently increased year-over-year, with a significant rise of approximately 43% from 2020 to 2024.

Total Assets

Decreased slightly from 2020 to 2022, then rebounded to near initial levels by 2024, indicating asset base stability.

Reported Total Asset Turnover

Improved steadily, suggesting more efficient asset use, rising from 0.35 to 0.50 over five years.

Adjusted Total Assets and Turnover

Follow the same general pattern as reported totals, confirming robustness of asset utilization improvements.

In summary, the data reflect a solid increase in sales supported by stable asset bases and improved asset management efficiency. This points to effective operational performance and possibly successful strategic initiatives enhancing revenue without proportionate asset growth.

The financial data reveals a gradual shift in the company's liquidity position over the five-year period analyzed. The current assets exhibit moderate fluctuations, with a slight decrease from 43,376 million US dollars at the end of 2020 to 42,050 million in 2021, followed by a mild increase to 42,443 million in 2022. Subsequently, a more pronounced rise is observed, reaching 48,417 million in 2023 and further increasing to 51,133 million by the end of 2024. This upward trend suggests an expansion in short-term resources available to the company, particularly in the latter years.

Conversely, current liabilities have displayed a consistent upward trajectory throughout the period. Starting at 35,848 million US dollars in 2020, there is a steady increase to 35,449 million in 2021, then climbing further to 39,114 million in 2022. The trend accelerates notably in the last two years, with liabilities reaching 46,761 million in 2023 and 51,499 million in 2024. This indicates growing short-term obligations, possibly reflecting increased operational or financing activities requiring more immediate liabilities.

As a result of these movements, the reported current ratio—calculated as current assets divided by current liabilities—declines progressively from 1.21 in 2020 to just below unity at 0.99 in 2024. This steady decrease suggests a weakening in the company’s ability to cover its short-term liabilities with its current assets, moving towards a less favorable liquidity position by the end of the period.

When considering the adjusted current assets, similar patterns are observed with values closely mirroring the reported current assets but slightly higher. The adjusted current assets start at 43,922 million US dollars in 2020, decrease marginally in 2021 to 42,525 million, and then remain relatively stable in 2022 before increasing significantly in 2023 and 2024 to 48,733 million and 51,422 million respectively.

The adjusted current ratio follows a pattern parallel to the reported current ratio, showing a decline from 1.23 in 2020 to 1.00 in 2024. While the adjusted measure remains slightly more favorable throughout the timeframe, the downward trajectory still points to a gradual erosion of liquidity cushion when accounting for adjustments made to current assets.

In summary, despite an increase in current assets—both reported and adjusted—the company's current liabilities have increased at a faster rate. This dynamic results in declining current ratios over the five years, indicating diminishing short-term financial flexibility. The movement towards a current ratio near or below 1.0 by the end of 2024 warrants attention, as it suggests the company may face tighter liquidity conditions in meeting its short-term obligations.

The financial data reveals several notable trends over the five-year period ending December 31, 2024. The company experienced fluctuations in both debt and equity metrics, with significant changes particularly evident in the later years.

Total Debt

Total debt remained relatively stable between 2020 and 2022, fluctuating marginally from $31,823 million to $31,914 million. However, a marked increase occurred in 2023, with total debt rising sharply to $43,827 million, before slightly declining to $41,261 million in 2024. This indicates a substantial increase in leverage or borrowing activity beginning in 2023.

Shareowners’ Equity

Shareowners' equity showed minor growth from $72,163 million in 2020 to $73,068 million in 2021, followed by a marginal decrease to $72,632 million in 2022. From 2022 to 2023, equity declined significantly to $59,798 million and then slightly increased to $60,156 million in 2024. This downward trend in equity from 2022 onward suggests possible losses, dividend payments, share buybacks, or other equity-reducing events affecting the company’s net worth.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio remained consistent at approximately 0.43 to 0.44 from 2020 through 2022. However, it rose sharply in 2023 to 0.73, indicating a notable increase in the company’s financial leverage. A slight improvement was observed in 2024 with the ratio decreasing to 0.69, but it remained significantly elevated compared to earlier years.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to total debt, staying relatively flat around $33,821 million to $33,856 million between 2020 and 2022. A pronounced increase is evident in 2023, when debt climbed to $45,587 million, with a marginal decrease to $43,260 million in 2024. The adjusted figures confirm the trend observed in reported debt, indicating a pronounced leverage increase in the recent two years.

Adjusted Total Equity

Adjusted total equity increased slightly from $78,923 million in 2020 to $80,184 million in 2021, then decreased marginally to $78,245 million in 2022. From 2022 to 2023, a substantial decline occurred, with adjusted equity dropping to $64,776 million, followed by a minor increase to $65,099 million in 2024. This mirrors the pattern seen in reported shareowners’ equity, further highlighting a deterioration in equity base in recent years.

Adjusted Debt to Equity Ratio

The adjusted debt-to-equity ratio remained steady at approximately 0.42 to 0.43 in the first three years. In 2023, it sharply increased to 0.70, indicating greater leverage, and then saw a slight decrease to 0.66 in 2024. Despite this minor improvement, leverage levels continue to be higher than historical averages during the early period, reflecting increased financial risk.

Overall, the analysis points to a period of stable financial structure from 2020 to 2022, followed by a significant increase in debt levels and a concurrent decrease in equity starting in 2023. This has led to a pronounced rise in leverage ratios, signaling increased financial risk and potentially changed capital structure strategy in recent years. Although some slight improvements in 2024 were observed, the company remains more leveraged than in the earlier period examined.

Total Debt and Capital

The total debt remained relatively stable from 2020 to 2022, fluctuating slightly around 31,800 million US dollars. However, a notable increase occurred in 2023, rising sharply to 43,827 million, before slightly declining to 41,261 million in 2024. In contrast, total capital showed a mild downward trend over the five years, starting at 103,986 million and decreasing to 101,417 million by 2024. This decline is gradual but consistent, indicating a possible reduction in overall capital base.

Reported Debt to Capital Ratio

The reported debt to capital ratio was stable at about 0.30 to 0.31 during the first three years, reflecting a balanced capital structure with moderate leverage. A significant increase occurred in 2023 when the ratio jumped to 0.42, indicating a higher reliance on debt financing. In 2024, the ratio slightly decreased to 0.41, but remains substantially elevated compared to earlier years.

Adjusted Debt and Capital

The adjusted total debt follows a similar pattern to reported total debt, stable around 33,800 million from 2020 to 2022, then rising sharply to 45,587 million in 2023 and decreasing mildly to 43,260 million in 2024. Adjusted total capital also shows a consistent decline, from 112,744 million in 2020 to 108,359 million in 2024, confirming a gradual contraction in the company's capital base when considering adjustments.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio mirrored the reported ratio's stability during the first three years at about 0.30 before increasing significantly to 0.41 in 2023 and slightly decreasing to 0.40 in 2024. This trend underscores an increasing leverage position, albeit with a small reduction in leverage in the most recent year.

Insights and Implications

The data reveal a consistent leverage profile from 2020 until 2022, followed by a marked increase in debt levels and debt-to-capital ratios starting in 2023. The increase in debt coupled with the declining capital base suggests a strategic shift toward higher financial leverage. The slight reduction in debt and leverage in 2024 could indicate early efforts to moderate this elevated risk. Overall, the financial structure has become more debt-intensive, which may increase financial risk but could also enhance returns if managed effectively.

The financial data over the five-year period presents several notable trends related to the company’s asset base, equity, and leverage ratios.

Total assets

Total assets showed a slight declining trend from 2020 to 2022, decreasing from 162,153 million US$ to 158,864 million US$. In 2023 and 2024, total assets experienced modest growth, reaching 162,861 million US$ by the end of 2024, which is slightly above the initial value in 2020. This points to relative stability in asset size with minor fluctuations over the period.

Shareowners’ equity (reported)

Reported equity remained relatively flat between 2020 and 2022, hovering around 72,000 million US$. However, a significant decline occurred in 2023, dropping to 59,798 million US$, and continuing to a marginal increase to 60,156 million US$ in 2024. This constitutes a notable decrease in equity, potentially reflecting internal losses, dividend payouts, or other adjustments affecting shareholders' equity.

Reported financial leverage

The reported financial leverage ratio showed a declining trend from 2.25 in 2020 to 2.19 in 2022, suggesting a slight reduction in reliance on debt relative to equity. However, in 2023 and 2024, this ratio increased sharply to 2.71, implying increased leverage and potentially higher risk or increased borrowing during those years.

Adjusted total assets

Adjusted total assets mirrored the total assets trend, with a decline from 162,699 million US$ in 2020 to 159,316 million US$ in 2022, followed by a gradual increase through 2024 to 163,150 million US$. This suggests adjustments do not materially alter the overall asset trend but may reflect refinements in accounting or asset valuations.

Adjusted total equity

Adjusted equity remained relatively steady from 2020 to 2022, around 78,000 million US$. A sharp decrease occurred in 2023 to 64,776 million US$, with a slight recovery in 2024 to 65,099 million US$. This pattern parallels the reported equity trend but with higher absolute values, suggesting adjusted equity considers additional elements not captured in reported figures.

Adjusted financial leverage

Adjusted leverage decreased marginally from 2.06 in 2020 to 2.02 in 2021 and slightly increased to 2.04 in 2022, reflecting relative stability. Thereafter, a significant increase to 2.50 in 2023 and a slight uptick to 2.51 in 2024 occurred, consistent with the reported leverage increase. This increase indicates a rising use of financial leverage after a period of stability.

In summary, the company’s total assets have been relatively stable with minor fluctuations, while equity experienced a considerable decline starting in 2023. This decline in equity is accompanied by a marked increase in both reported and adjusted financial leverage ratios, indicating an increased dependence on debt or liabilities relative to equity. The adjusted measures closely follow the trends of the reported figures but reflect higher equity bases and slightly lower leverage ratios, suggesting some adjustments positively impact equity valuation. Overall, the data signals increased financial risk during the latter two years, warranting attention to leverage and equity management moving forward.

The financial data reflects significant fluctuations and overall growth trends across multiple metrics over the reported periods.

Net Income (Loss) Attributable to Common Shareowners

The net income displayed substantial volatility, beginning with a notable loss in 2020, followed by a strong recovery in 2021 and 2022. Although there was a decline in 2023, profitability rebounded again in 2024, reaching the highest level within the timeframe. This pattern suggests sensitivity to variable factors influencing profitability but with an overall positive trajectory by the end of the period.

Net Sales

Net sales exhibited steady and consistent growth each year, advancing from approximately $56.6 billion in 2020 to over $80.7 billion by the end of 2024. This continuous increase indicates expanding revenue-generating capacity and possibly an improving market position or demand for products and services.

Reported Net Profit Margin

The reported net profit margin followed a pattern reflective of the net income trend. Initially negative in 2020, it turned positive and peaked in 2022. There was a decline in 2023, followed by partial recovery in 2024. Although improving over time, margins experienced some contraction after the peak, pointing to fluctuations in cost management or pricing strategies.

Adjusted Net Income (Loss)

Adjusted net income revealed a less volatile profile than the reported net income, with a small loss recorded in 2020 transitioning to substantial gains in 2021. The adjusted figures declined in 2022 and 2023, then increased again in 2024. Despite decreases mid-period, the adjusted income remains positive after 2020, indicating underlying operational profitability after excluding specific items.

Adjusted Net Profit Margin

Adjusted profit margins displayed an improvement from a slight negative in 2020 to a peak in 2021. Subsequently, margins narrowed in 2022 and 2023 before modestly expanding in 2024. These changes imply evolving cost structures or operational efficiencies, with the highest margin recorded in 2021 serving as a benchmark for performance variability.

Overall, the financial data reflects a company recovering from initial losses, achieving growth in sales, and maintaining profitability with some fluctuations in margins and income metrics. The adjusted figures suggest a stabilizing operational performance after accounting for non-recurring items or adjustments.

The financial data reveals several key trends in the company's performance and equity over the five-year period from 2020 to 2024. Net income attributable to common shareowners showed a significant improvement, shifting from a substantial loss in 2020 to positive and increasing profits in subsequent years, with a notable peak in 2022, a slight dip in 2023, and recovery in 2024.

Net Income (Loss) Attributable to Common Shareowners

There was a sharp turnaround from a loss of approximately $3.5 billion in 2020 to a profit of nearly $3.9 billion in 2021. This upward trend continued, reaching over $5.1 billion in 2022. Although there was a decline to around $3.2 billion in 2023, the figure rebounded again to about $4.8 billion in 2024, indicating some volatility but overall strong profitability post-2020.

Shareowners’ Equity

Shareowners’ equity slightly increased from about $72.2 billion in 2020 to around $73.1 billion in 2021 but decreased steadily afterwards, reaching approximately $59.8 billion in 2023 and remaining relatively stable at about $60.2 billion in 2024. This suggests some erosion of equity value despite ongoing profitability improvements.

Reported Return on Equity (ROE)

Reported ROE transitioned from a negative value of -4.88% in 2020 to positive returns over the following years. It peaked at 7.16% in 2022, dipped to 5.34% in 2023, and then rose again to 7.94% in 2024. This pattern reflects the fluctuations in net income and the changes in equity.

Adjusted Net Income (Loss)

The adjusted net income followed a similar positive trajectory, beginning at a loss of $195 million in 2020 and moving to a substantial gain of $5.8 billion in 2021. Subsequently, adjusted income decreased to approximately $3.5 billion in 2022, declined further to about $2.4 billion in 2023, and then increased to around $3.6 billion in 2024. These adjustments indicate volatility but a generally positive underlying earnings trend post-2020.

Adjusted Total Equity

Adjusted total equity increased modestly from roughly $78.9 billion in 2020 to $80.2 billion in 2021, then experienced a decline to about $64.8 billion in 2023 before stabilizing near $65.1 billion in 2024. This decline aligns with the trend seen in reported equity and suggests similar underlying equity valuation changes after adjustments.

Adjusted Return on Equity

Adjusted ROE improved from a slight negative of -0.25% in 2020 to a high of 7.24% in 2021, followed by decreases to 4.52% in 2022 and further to 3.77% in 2023. It then increased again to 5.53% in 2024, mirroring the fluctuations in adjusted net income relative to adjusted equity.

Overall, the data reflect a recovery from a significant loss in 2020 to sustained profitability in subsequent years, although with some fluctuations in earnings and equity. The decline in equity values after 2021 despite positive income indicates potential challenges in maintaining equity levels, which impacts returns on equity. Both reported and adjusted metrics show similar trends, confirming consistency between the measures of performance and financial position.

Net Income (Loss) Attributable to Common Shareowners

The company experienced a significant turnaround in net income, shifting from a substantial loss of $3,519 million in 2020 to positive earnings in subsequent years. There was an increase to $3,864 million in 2021 and a further rise to $5,197 million in 2022. However, the net income declined to $3,195 million in 2023 before recovering to $4,774 million in 2024, indicating some volatility but an overall positive trend over the period.

Total Assets

Total assets remained relatively stable throughout the years, fluctuating slightly between approximately $158,864 million and $162,861 million. The asset base contracted modestly from 2020 to 2022, followed by a gradual increase through 2023 and 2024, suggesting a steady asset management strategy without major expansion or divestment.

Reported Return on Assets (ROA)

Reported ROA reflected the net income trends, with a negative return of -2.17% in 2020 turning positive at 2.39% in 2021 and peaking at 3.27% in 2022. It decreased to 1.97% in 2023 before rising again to 2.93% in 2024. This pattern indicates an initial recovery followed by some pressure on profitability relative to assets and a partial recovery thereafter.

Adjusted Net Income (Loss)

The adjusted net income data reveals a similar but smoother trend compared to reported net income. Starting from a relatively minor loss of $195 million in 2020, adjusted net income surged to $5,805 million in 2021, then moderated to $3,538 million in 2022. It continued to decline to $2,441 million in 2023 before increasing again to $3,603 million in 2024. This suggests underlying profitability adjusted for one-time items or anomalies showed strong improvement with ongoing fluctuations.

Adjusted Total Assets

Adjusted total assets closely track the trends seen in reported total assets, with values declining from $162,699 million in 2020 to $159,316 million in 2022, then recovering to $163,150 million in 2024. This consistency indicates that asset adjustments did not materially alter the overall asset base assessment.

Adjusted Return on Assets (ROA)

The adjusted ROA moved from a near breakeven of -0.12% in 2020 to a peak of 3.59% in 2021, followed by a steady decline through 2023 to 1.51%. In 2024, the adjusted ROA improved to 2.21%. The pattern reflects the influence of extraordinary items removed in adjustments, showing more pronounced gains early on and a gradual normalization over time.