RTX Corp. (NYSE:RTX)

The financial metrics presented demonstrate varying trends over the five-year period. Generally, adjusted ratios exhibit greater volatility than their reported counterparts, suggesting the impact of specific adjustments on the company’s financial position. Asset turnover ratios show a consistent, albeit modest, increase, while liquidity and leverage ratios fluctuate more significantly. Profitability ratios, particularly when adjusted, reveal substantial shifts in performance.

Asset Turnover

Both reported and adjusted total asset turnover ratios display an upward trend, increasing from 0.40 in 2021 to 0.52 and 0.52 respectively in 2025. The adjusted ratio remains consistently aligned with the reported ratio, indicating the adjustments have minimal impact on this metric. This suggests improving efficiency in utilizing assets to generate revenue.

Liquidity

The reported current ratio experiences a decline from 1.19 in 2021 to 0.99 in 2024 before recovering slightly to 1.03 in 2025. The adjusted current ratio mirrors this pattern, starting at 1.20 and reaching 1.03 in 2025. The dip below 1.0 in 2024 indicates a potential short-term liquidity concern, though the subsequent recovery offers some reassurance.

Leverage

Reported debt to equity and debt to capital ratios increase significantly between 2021 and 2023, peaking at 0.73 and 0.42 respectively, before decreasing in subsequent years. Adjusted ratios follow a similar pattern, though the magnitude of change is slightly less pronounced. Financial leverage also increases substantially, from 2.21 to 2.71, then declines. This suggests a period of increased reliance on debt financing followed by a deleveraging effort. The adjustments appear to moderate the perceived level of financial risk.

Profitability

Reported net profit margin initially increases from 6.00% to 7.75% but then declines to 4.64% before recovering to 7.60%. The adjusted net profit margin exhibits a more dramatic fluctuation, rising sharply to 9.02% in 2022, falling to 3.54% in 2023, and then increasing substantially to 10.10% in 2025. This significant divergence between reported and adjusted profitability suggests the adjustments are related to items that have a substantial impact on net income.

Reported return on equity (ROE) and return on assets (ROA) generally follow the trend of the net profit margin, with initial increases followed by declines and subsequent recoveries. The adjusted ROE and ROA demonstrate even greater volatility, mirroring the fluctuations observed in the adjusted net profit margin. The substantial increase in adjusted ROE to 12.60% and adjusted ROA to 5.22% in 2025 indicates a significant improvement in profitability relative to equity and assets, respectively, after accounting for the adjustments.

In summary, the company demonstrates improving asset utilization and a fluctuating leverage position. The most notable observation is the significant impact of adjustments on profitability metrics, suggesting that non-recurring or unusual items are influencing reported earnings. Further investigation into the nature of these adjustments is warranted to understand their underlying causes and implications.

Net sales exhibited a consistent upward trajectory over the five-year period, increasing from US$64,388 million in 2021 to US$88,603 million in 2025. Total assets demonstrated relative stability between 2021 and 2023, followed by moderate increases in 2024 and 2025, reaching US$171,079 million. Both the reported and adjusted total asset turnover ratios showed an increasing trend throughout the period, suggesting improving efficiency in asset utilization.

Net Sales Trend

Net sales increased steadily each year. The largest year-over-year increase occurred between 2023 and 2024, with a rise of US$11,818 million. The growth rate appears to have moderated slightly between 2024 and 2025, although sales continued to climb.

Total Asset Trend

Total assets experienced a slight decrease in 2022 before recovering and increasing through 2025. The increase from 2024 to 2025 was US$8,218 million, representing the largest annual increase in the observed period. This suggests a potential investment in asset growth to support increasing sales.

Asset Turnover Analysis

The reported total asset turnover ratio increased from 0.40 in 2021 to 0.52 in 2025, indicating that the company generated more sales per dollar of assets over time. The adjusted total asset turnover ratio mirrored this trend, starting at 0.40 in 2021 and reaching 0.52 in 2025. The adjusted ratio remained consistently close to the reported ratio throughout the period, with minimal divergence. The increase in both ratios suggests improved operational efficiency and effective asset management.

Adjusted Total Assets vs. Reported Total Assets

The adjusted total assets figures are consistently close to the reported total assets, with differences generally remaining within a narrow range. This suggests that the adjustments made to total assets are not substantial and do not significantly alter the overall asset base. The minor adjustments do not appear to materially impact the asset turnover calculation.

Overall, the financial information indicates a positive trend in sales generation and asset utilization. The consistent increase in both reported and adjusted total asset turnover ratios, coupled with growing net sales, suggests the company is becoming more efficient in converting its investments in assets into revenue.

The adjusted current ratio exhibits a generally stable pattern over the five-year period, with minor fluctuations. While the reported current ratio declined from 2021 to 2024, the adjusted current ratio demonstrates a slightly more consistent profile. A closer examination reveals specific trends and potential areas of interest.

Overall Trend

The adjusted current ratio begins at 1.20 in 2021, decreases to 1.00 in 2024, and then recovers slightly to 1.03 in 2025. This suggests a period of potential liquidity pressure between 2021 and 2024, followed by a modest improvement. The ratio remains above 1.00 throughout the period, indicating the entity possesses more current assets than current liabilities.

Year-over-Year Changes

From 2021 to 2022, the adjusted current ratio decreased from 1.20 to 1.10, representing a 8.33% decline. A further decrease of 8.18% is observed from 2022 to 2023, bringing the ratio down to 1.04. The most significant decline occurs between 2023 and 2024, with a drop of 4.76% to 1.00. Finally, a 3.00% increase is noted from 2024 to 2025, reaching 1.03.

Comparison to Reported Current Ratio

The adjusted current ratio consistently reports a slightly higher value than the reported current ratio across all years. The difference is minimal, ranging from 0.01 to 0.02. This indicates that the adjustments made to current assets have a small but consistent positive impact on the liquidity position as measured by this ratio.

Asset and Liability Movements

Adjusted current assets increased from US$42,525 million in 2021 to US$60,672 million in 2025, representing a 42.68% increase overall. Adjusted current liabilities also increased, from US$35,449 million in 2021 to US$58,784 million in 2025, a 66.22% increase. The faster growth of current liabilities relative to current assets likely contributed to the initial decline in the adjusted current ratio between 2021 and 2024.

In conclusion, the adjusted current ratio suggests a generally stable, though initially declining, liquidity position. The recent slight recovery in 2025 is a positive sign, but continued monitoring of both current asset and current liability trends is warranted.

The adjusted debt to equity ratio exhibited a relatively stable pattern over the five-year period, with fluctuations observed between 0.42 and 0.70. Initial values were consistent, followed by an increase and subsequent decline. A closer examination reveals specific trends in both the adjusted debt and adjusted equity components contributing to these changes.

Adjusted Debt to Equity Ratio - Overall Trend

The adjusted debt to equity ratio began at 0.42 in 2021 and remained at 0.43 in 2022, indicating a period of stability. A notable increase occurred in 2023, reaching 0.70, before decreasing to 0.66 in 2024 and further declining to 0.56 in 2025. This suggests a period of increased leverage followed by deleveraging.

Adjusted Total Debt

Adjusted total debt increased from US$33,553 million in 2021 to US$33,856 million in 2022, representing a modest rise. A significant increase was then observed, with adjusted total debt reaching US$45,587 million in 2023. This was followed by a decrease to US$43,260 million in 2024 and a further reduction to US$39,956 million in 2025. The 2023 peak suggests a period of substantial borrowing or increased financial obligations.

Adjusted Total Equity

Adjusted total equity started at US$80,184 million in 2021 and decreased to US$78,245 million in 2022. A further decline was seen in 2023, reaching US$64,776 million. Equity then showed a slight increase to US$65,099 million in 2024, followed by a more substantial increase to US$71,026 million in 2025. The decrease in equity during 2022 and 2023 likely contributed to the rising debt to equity ratio during that period.

Relationship between Debt and Equity Adjustments

The increase in the adjusted debt to equity ratio in 2023 appears to be driven primarily by the substantial increase in adjusted total debt, coupled with a decrease in adjusted total equity. The subsequent decline in the ratio from 2024 to 2025 is attributable to a combination of decreasing adjusted total debt and increasing adjusted total equity. These movements suggest a shift in the company’s capital structure.

The observed trends indicate a dynamic financial position, with periods of increased leverage followed by efforts to reduce debt relative to equity. The fluctuations in both adjusted debt and adjusted equity warrant further investigation to understand the underlying business decisions and their impact on the company’s financial health.

The information presents a five-year trend of debt and capital figures, culminating in calculated ratios. Total debt exhibited an initial increase from 2021 to 2023, peaking at US$43,827 million, before declining in the subsequent two years to US$37,904 million by the end of 2025. Total capital demonstrated a more moderate fluctuation, generally decreasing from 2021 to 2024, then experiencing a slight increase in 2025, ending at US$103,149 million.

Reported Debt to Capital

The reported debt to capital ratio remained relatively stable between 2021 and 2022, at 0.30 and 0.31 respectively. A notable increase occurred in 2023, reaching 0.42, followed by a slight decrease to 0.41 in 2024. The ratio concluded the period at 0.37 in 2025, indicating a return towards earlier levels but remaining higher than the initial values.

Adjusted Total Debt

Adjusted total debt mirrored the trend of total debt, increasing from US$33,553 million in 2021 to US$45,587 million in 2023, and then decreasing to US$39,956 million in 2025. The magnitude of the increase and decrease was similar to that observed in total debt.

Adjusted Total Capital

Adjusted total capital followed a similar pattern to total capital, with a gradual decline from US$113,737 million in 2021 to US$108,359 million in 2024, and a subsequent increase to US$110,982 million in 2025. The fluctuations were less pronounced than those observed in the debt figures.

Adjusted Debt to Capital

The adjusted debt to capital ratio remained at 0.30 for 2021 and 2022. It increased to 0.41 in 2023, decreased slightly to 0.40 in 2024, and finished at 0.36 in 2025. This trend parallels the reported debt to capital ratio, suggesting the adjustments to debt and capital are proportionally affecting the ratio’s value. The ratio’s movement indicates a period of increased leverage followed by a partial reduction.

Overall, the period demonstrates a cycle of increasing leverage, peaking in 2023, followed by a period of deleveraging. The adjusted ratios provide a consistent picture of this trend, aligning with the reported figures.

An examination of the financial information reveals trends in adjusted financial leverage over a five-year period. Total assets exhibited a generally stable pattern, with a slight increase observed from 2021 to 2023, followed by continued growth through 2025. Shareowners’ equity experienced a decrease from 2021 to 2023 before beginning a recovery, though it did not return to its initial level by the end of the period. These movements in the underlying components influenced the observed leverage ratios.

Reported Financial Leverage

Reported financial leverage remained relatively consistent between 2021 and 2022, at 2.21 and 2.19 respectively. A notable increase occurred in 2023, rising to 2.71, and remained at that level in 2024. A slight decrease to 2.62 was observed in 2025. This suggests a growing reliance on debt financing relative to equity during the 2023-2024 timeframe, followed by a modest improvement in 2025.

Adjusted Total Assets & Equity

Adjusted total assets mirrored the trend of reported total assets, showing a similar pattern of stability and growth. Adjusted total equity also followed the trend of shareowners’ equity, declining from 2021 to 2023 and then recovering, though not fully, through 2025. The adjustments made to these figures appear to impact the overall leverage calculation.

Adjusted Financial Leverage

Adjusted financial leverage demonstrated a decrease from 2.02 in 2021 to 2.04 in 2022. Similar to the reported leverage, an increase was observed in 2023, reaching 2.50, and holding at 2.51 in 2024. A decrease to 2.41 was noted in 2025. The adjusted leverage ratio consistently reports a lower level of financial risk compared to the reported leverage ratio across all periods examined. The trend indicates an increasing reliance on debt financing between 2022 and 2024, followed by a slight reduction in leverage in 2025.

The difference between reported and adjusted financial leverage suggests that the adjustments to total assets and equity have a material impact on the assessment of the company’s financial risk profile. The consistent reduction in adjusted leverage compared to reported leverage indicates that the adjustments are lowering the perceived risk.

The adjusted net profit margin exhibited considerable fluctuation between 2021 and 2025. Initial values were strong, followed by a period of decline, and then a substantial recovery. A detailed examination of the trends is presented below.

Adjusted Net Profit Margin - Overall Trend

The adjusted net profit margin began at 9.02% in 2021, representing a relatively high level of profitability. This was followed by a significant decrease to 5.27% in 2022, and a further decline to 3.54% in 2023. A modest increase to 4.46% was observed in 2024, culminating in a substantial rise to 10.10% in 2025. This indicates a volatile period with a strong recovery in the most recent year.

Comparison with Reported Net Profit Margin

The adjusted net profit margin consistently differed from the reported net profit margin across all observed periods. The adjustments appear to have a significant impact, particularly in 2022 and 2023, where the adjusted margin was notably lower than the reported margin. In 2025, the adjusted margin surpassed the reported margin, suggesting the nature of the adjustments had a positive effect on profitability in that year.

Relationship to Net Sales

Net sales demonstrated a consistent upward trend throughout the period, increasing from US$64,388 million in 2021 to US$88,603 million in 2025. However, the adjusted net profit margin did not move in direct correlation with net sales. While sales increased between 2022 and 2023, the adjusted net profit margin decreased. Conversely, the largest increase in adjusted net profit margin occurred between 2024 and 2025, coinciding with a substantial increase in net sales.

Adjusted Net Income Contribution

Adjusted net income followed a similar pattern to the adjusted net profit margin, declining from US$5,805 million in 2021 to US$2,441 million in 2023, before increasing to US$3,603 million in 2024 and reaching US$8,946 million in 2025. The significant increase in adjusted net income in 2025 was a primary driver of the substantial improvement in the adjusted net profit margin.

In summary, the adjusted net profit margin experienced considerable volatility during the analyzed period. The substantial increase in 2025 warrants further investigation to determine the underlying factors contributing to this improvement, particularly in relation to the adjustments made to net income.

The adjusted return on equity (ROE) exhibited considerable fluctuation between 2021 and 2025. While reported ROE generally increased over the period, the adjusted ROE presents a more complex picture, demonstrating initial decline followed by substantial growth.

Adjusted ROE Trend

In 2021, the adjusted ROE stood at 7.24%. A significant decrease was observed in 2022, falling to 4.52%. This downward trend continued into 2023, with the adjusted ROE reaching a low of 3.77%. A modest recovery occurred in 2024, increasing to 5.53%, but a substantial surge was then recorded in 2025, reaching 12.60%.

Relationship to Adjusted Net Income

The fluctuations in adjusted ROE correlate with changes in adjusted net income. Adjusted net income decreased from US$5,805 million in 2021 to US$3,538 million in 2022, and further to US$2,441 million in 2023. The subsequent increase in adjusted net income to US$3,603 million in 2024 and a dramatic rise to US$8,946 million in 2025 align with the observed recovery and surge in adjusted ROE, respectively.

Relationship to Adjusted Total Equity

Adjusted total equity also experienced changes throughout the period. It began at US$80,184 million in 2021, decreased to US$78,245 million in 2022, and then fell to US$64,776 million in 2023. A slight increase to US$65,099 million was noted in 2024, followed by a more substantial increase to US$71,026 million in 2025. The impact of these equity changes on the adjusted ROE is evident; the decrease in equity from 2021-2023, coupled with declining net income, contributed to the falling ROE. The increases in both net income and equity in 2024 and 2025 drove the subsequent ROE improvement.

The considerable difference between reported and adjusted ROE suggests that certain items are being adjusted for when calculating the latter. The significant increase in adjusted ROE in 2025, driven by a substantial rise in adjusted net income, warrants further investigation to understand the nature of these adjustments and their impact on the overall financial performance.

The adjusted return on assets (ROA) exhibited fluctuations over the five-year period. Initial values were relatively high, followed by a decline, and then a substantial increase in the most recent year. A review of the underlying components, adjusted net income and adjusted total assets, provides further insight into these movements.

Adjusted ROA Trend

The adjusted ROA began at 3.59% in 2021, decreased to 2.22% in 2022, and continued to fall to a low of 1.51% in 2023. A modest recovery to 2.21% occurred in 2024, before a significant jump to 5.22% in 2025. This indicates increasing profitability relative to adjusted assets in the latest period.

Adjusted Net Income Influence

Adjusted net income decreased from US$5,805 million in 2021 to US$3,538 million in 2022, and further declined to US$2,441 million in 2023. It showed a slight increase to US$3,603 million in 2024, and then a substantial increase to US$8,946 million in 2025. This pattern largely explains the fluctuations in the adjusted ROA, as net income is a key component of the ratio.

Adjusted Total Assets Influence

Adjusted total assets experienced a slight increase from US$161,879 million in 2021 to US$162,185 million in 2023, with a dip to US$159,316 million in 2022. A further increase was observed in 2024 to US$163,150 million, and continued to US$171,419 million in 2025. The growth in adjusted total assets was more moderate than the changes in adjusted net income, suggesting that the primary driver of the adjusted ROA changes was profitability.

The substantial increase in adjusted ROA in 2025 is directly correlated with the significant rise in adjusted net income, while the increase in adjusted total assets was comparatively smaller. This suggests improved efficiency in generating profits from the asset base during that year.