Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
RTX Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | RTX Corp. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | RTX Corp. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | RTX Corp. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | RTX Corp. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | RTX Corp. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | RTX Corp. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | RTX Corp. financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | RTX Corp. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | RTX Corp. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity
RTX Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 189) | 625) | 134) | 247) | 2,364) | |
| Long-term debt currently due | 1,283) | 595) | 24) | 550) | 3,496) | |
| Long-term debt, excluding currently due | 42,355) | 30,694) | 31,327) | 31,026) | 37,788) | |
| Total debt | 43,827) | 31,914) | 31,485) | 31,823) | 43,648) | |
| Shareowners’ equity | 59,798) | 72,632) | 73,068) | 72,163) | 41,774) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.73 | 0.44 | 0.43 | 0.44 | 1.04 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 1.94 | 2.33 | 2.29 | 2.42 | 2.58 | |
| Eaton Corp. plc | 0.49 | 0.51 | 0.52 | 0.54 | 0.52 | |
| GE Aerospace | 0.77 | 0.89 | 0.87 | 2.11 | 3.21 | |
| Honeywell International Inc. | 1.29 | 1.17 | 1.06 | 1.28 | 0.87 | |
| Lockheed Martin Corp. | 2.55 | 1.68 | 1.07 | 2.02 | 4.05 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.54 | 1.33 | 1.26 | 1.75 | 2.08 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.43 | 1.32 | 1.25 | 1.73 | 1.86 | |
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).
1 2023 Calculation
Debt to equity = Total debt ÷ Shareowners’ equity
= 43,827 ÷ 59,798 = 0.73
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | RTX Corp. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
RTX Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 189) | 625) | 134) | 247) | 2,364) | |
| Long-term debt currently due | 1,283) | 595) | 24) | 550) | 3,496) | |
| Long-term debt, excluding currently due | 42,355) | 30,694) | 31,327) | 31,026) | 37,788) | |
| Total debt | 43,827) | 31,914) | 31,485) | 31,823) | 43,648) | |
| Operating lease liabilities, current (included in Other accrued liabilities) | 348) | 356) | 411) | 482) | 544) | |
| Operating lease liabilities, non-current | 1,412) | 1,586) | 1,657) | 1,516) | 2,144) | |
| Total debt (including operating lease liability) | 45,587) | 33,856) | 33,553) | 33,821) | 46,336) | |
| Shareowners’ equity | 59,798) | 72,632) | 73,068) | 72,163) | 41,774) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.76 | 0.47 | 0.46 | 0.47 | 1.11 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 1.97 | 2.37 | 2.33 | 2.46 | 2.62 | |
| Eaton Corp. plc | 0.52 | 0.54 | 0.55 | 0.57 | 0.55 | |
| GE Aerospace | 0.84 | 0.96 | 0.94 | 2.20 | 3.32 | |
| Honeywell International Inc. | 1.36 | 1.23 | 1.11 | 1.32 | 0.90 | |
| Lockheed Martin Corp. | 2.73 | 1.81 | 1.19 | 2.21 | 4.40 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.61 | 1.39 | 1.32 | 1.81 | 2.17 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.61 | 1.47 | 1.39 | 1.89 | 1.96 | |
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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareowners’ equity
= 45,587 ÷ 59,798 = 0.76
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | RTX Corp. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
RTX Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 189) | 625) | 134) | 247) | 2,364) | |
| Long-term debt currently due | 1,283) | 595) | 24) | 550) | 3,496) | |
| Long-term debt, excluding currently due | 42,355) | 30,694) | 31,327) | 31,026) | 37,788) | |
| Total debt | 43,827) | 31,914) | 31,485) | 31,823) | 43,648) | |
| Shareowners’ equity | 59,798) | 72,632) | 73,068) | 72,163) | 41,774) | |
| Total capital | 103,625) | 104,546) | 104,553) | 103,986) | 85,422) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.42 | 0.31 | 0.30 | 0.31 | 0.51 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.49 | 1.39 | 1.35 | 1.40 | 1.46 | |
| Caterpillar Inc. | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | |
| Eaton Corp. plc | 0.33 | 0.34 | 0.34 | 0.35 | 0.34 | |
| GE Aerospace | 0.43 | 0.47 | 0.47 | 0.68 | 0.76 | |
| Honeywell International Inc. | 0.56 | 0.54 | 0.51 | 0.56 | 0.46 | |
| Lockheed Martin Corp. | 0.72 | 0.63 | 0.52 | 0.67 | 0.80 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.61 | 0.57 | 0.56 | 0.64 | 0.68 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.59 | 0.57 | 0.56 | 0.63 | 0.65 | |
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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 43,827 ÷ 103,625 = 0.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | RTX Corp. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
RTX Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 189) | 625) | 134) | 247) | 2,364) | |
| Long-term debt currently due | 1,283) | 595) | 24) | 550) | 3,496) | |
| Long-term debt, excluding currently due | 42,355) | 30,694) | 31,327) | 31,026) | 37,788) | |
| Total debt | 43,827) | 31,914) | 31,485) | 31,823) | 43,648) | |
| Operating lease liabilities, current (included in Other accrued liabilities) | 348) | 356) | 411) | 482) | 544) | |
| Operating lease liabilities, non-current | 1,412) | 1,586) | 1,657) | 1,516) | 2,144) | |
| Total debt (including operating lease liability) | 45,587) | 33,856) | 33,553) | 33,821) | 46,336) | |
| Shareowners’ equity | 59,798) | 72,632) | 73,068) | 72,163) | 41,774) | |
| Total capital (including operating lease liability) | 105,385) | 106,488) | 106,621) | 105,984) | 88,110) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.43 | 0.32 | 0.31 | 0.32 | 0.53 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.47 | 1.37 | 1.34 | 1.39 | 1.43 | |
| Caterpillar Inc. | 0.66 | 0.70 | 0.70 | 0.71 | 0.72 | |
| Eaton Corp. plc | 0.34 | 0.35 | 0.36 | 0.36 | 0.35 | |
| GE Aerospace | 0.46 | 0.49 | 0.49 | 0.69 | 0.77 | |
| Honeywell International Inc. | 0.58 | 0.55 | 0.53 | 0.57 | 0.47 | |
| Lockheed Martin Corp. | 0.73 | 0.64 | 0.54 | 0.69 | 0.81 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.62 | 0.58 | 0.57 | 0.64 | 0.68 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.62 | 0.60 | 0.58 | 0.65 | 0.66 | |
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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 45,587 ÷ 105,385 = 0.43
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | RTX Corp. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
RTX Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 189) | 625) | 134) | 247) | 2,364) | |
| Long-term debt currently due | 1,283) | 595) | 24) | 550) | 3,496) | |
| Long-term debt, excluding currently due | 42,355) | 30,694) | 31,327) | 31,026) | 37,788) | |
| Total debt | 43,827) | 31,914) | 31,485) | 31,823) | 43,648) | |
| Total assets | 161,869) | 158,864) | 161,404) | 162,153) | 139,716) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.27 | 0.20 | 0.20 | 0.20 | 0.31 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.38 | 0.42 | 0.42 | 0.42 | 0.20 | |
| Caterpillar Inc. | 0.43 | 0.45 | 0.46 | 0.47 | 0.48 | |
| Eaton Corp. plc | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | |
| GE Aerospace | 0.13 | 0.17 | 0.18 | 0.30 | 0.34 | |
| Honeywell International Inc. | 0.33 | 0.31 | 0.30 | 0.35 | 0.27 | |
| Lockheed Martin Corp. | 0.33 | 0.29 | 0.23 | 0.24 | 0.27 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.29 | 0.28 | 0.28 | 0.32 | 0.31 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.30 | 0.29 | 0.29 | 0.32 | 0.32 | |
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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 43,827 ÷ 161,869 = 0.27
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | RTX Corp. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
RTX Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 189) | 625) | 134) | 247) | 2,364) | |
| Long-term debt currently due | 1,283) | 595) | 24) | 550) | 3,496) | |
| Long-term debt, excluding currently due | 42,355) | 30,694) | 31,327) | 31,026) | 37,788) | |
| Total debt | 43,827) | 31,914) | 31,485) | 31,823) | 43,648) | |
| Operating lease liabilities, current (included in Other accrued liabilities) | 348) | 356) | 411) | 482) | 544) | |
| Operating lease liabilities, non-current | 1,412) | 1,586) | 1,657) | 1,516) | 2,144) | |
| Total debt (including operating lease liability) | 45,587) | 33,856) | 33,553) | 33,821) | 46,336) | |
| Total assets | 161,869) | 158,864) | 161,404) | 162,153) | 139,716) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.28 | 0.21 | 0.21 | 0.21 | 0.33 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.40 | 0.43 | 0.43 | 0.43 | 0.21 | |
| Caterpillar Inc. | 0.44 | 0.46 | 0.46 | 0.48 | 0.49 | |
| Eaton Corp. plc | 0.26 | 0.26 | 0.27 | 0.27 | 0.27 | |
| GE Aerospace | 0.14 | 0.19 | 0.19 | 0.31 | 0.35 | |
| Honeywell International Inc. | 0.35 | 0.33 | 0.32 | 0.36 | 0.28 | |
| Lockheed Martin Corp. | 0.36 | 0.32 | 0.26 | 0.26 | 0.29 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.30 | 0.30 | 0.29 | 0.33 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.33 | 0.33 | 0.32 | 0.35 | 0.34 | |
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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 45,587 ÷ 161,869 = 0.28
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | RTX Corp. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
RTX Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 4.49 | 5.16 | 5.02 | 5.11 | 5.38 | |
| Eaton Corp. plc | 2.02 | 2.06 | 2.07 | 2.13 | 2.04 | |
| GE Aerospace | 5.96 | 5.16 | 4.93 | 7.13 | 9.40 | |
| Honeywell International Inc. | 3.88 | 3.73 | 3.47 | 3.68 | 3.17 | |
| Lockheed Martin Corp. | 7.67 | 5.71 | 4.64 | 8.43 | 15.20 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 5.35 | 4.71 | 4.55 | 5.54 | 6.65 | |
| Financial Leverage, Industry | ||||||
| Industrials | 4.81 | 4.49 | 4.33 | 5.35 | 5.76 | |
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).
1 2023 Calculation
Financial leverage = Total assets ÷ Shareowners’ equity
= 161,869 ÷ 59,798 = 2.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | RTX Corp. financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Interest Coverage
RTX Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common shareowners | 3,195) | 5,197) | 3,864) | (3,519) | 5,537) | |
| Add: Net income attributable to noncontrolling interest | 185) | 111) | 248) | 224) | 411) | |
| Less: Loss from discontinued operations | —) | (19) | (33) | (367) | —) | |
| Add: Income tax expense | 456) | 700) | 786) | 575) | 2,295) | |
| Add: Interest expense | 1,653) | 1,300) | 1,330) | 1,430) | 1,773) | |
| Earnings before interest and tax (EBIT) | 5,489) | 7,327) | 6,261) | (923) | 10,016) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 3.32 | 5.64 | 4.71 | -0.65 | 5.65 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | 0.18 | -0.98 | -0.88 | -5.71 | -2.19 | |
| Caterpillar Inc. | 26.66 | 20.80 | 17.88 | 8.80 | 19.62 | |
| Eaton Corp. plc | 26.34 | 21.22 | 21.11 | 12.72 | 11.98 | |
| GE Aerospace | 10.12 | 1.88 | -0.96 | 2.59 | 1.27 | |
| Honeywell International Inc. | 10.36 | 16.41 | 22.09 | 17.75 | 22.17 | |
| Lockheed Martin Corp. | 9.84 | 11.72 | 14.27 | 14.93 | 12.09 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 6.84 | 4.84 | 3.98 | 1.99 | 4.85 | |
| Interest Coverage, Industry | ||||||
| Industrials | 7.24 | 5.53 | 6.00 | 2.04 | 4.37 | |
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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,489 ÷ 1,653 = 3.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | RTX Corp. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Fixed Charge Coverage
RTX Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to common shareowners | 3,195) | 5,197) | 3,864) | (3,519) | 5,537) | |
| Add: Net income attributable to noncontrolling interest | 185) | 111) | 248) | 224) | 411) | |
| Less: Loss from discontinued operations | —) | (19) | (33) | (367) | —) | |
| Add: Income tax expense | 456) | 700) | 786) | 575) | 2,295) | |
| Add: Interest expense | 1,653) | 1,300) | 1,330) | 1,430) | 1,773) | |
| Earnings before interest and tax (EBIT) | 5,489) | 7,327) | 6,261) | (923) | 10,016) | |
| Add: Operating lease expense | 463) | 475) | 525) | 497) | 720) | |
| Earnings before fixed charges and tax | 5,952) | 7,802) | 6,786) | (426) | 10,736) | |
| Interest expense | 1,653) | 1,300) | 1,330) | 1,430) | 1,773) | |
| Operating lease expense | 463) | 475) | 525) | 497) | 720) | |
| Fixed charges | 2,116) | 1,775) | 1,855) | 1,927) | 2,493) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 2.81 | 4.40 | 3.66 | -0.22 | 4.31 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | 0.31 | -0.70 | -0.64 | -4.75 | -1.19 | |
| Caterpillar Inc. | 19.73 | 14.92 | 12.73 | 6.58 | 13.01 | |
| Eaton Corp. plc | 11.90 | 10.01 | 10.40 | 6.24 | 7.45 | |
| GE Aerospace | 5.25 | 1.35 | -0.22 | 1.93 | 1.09 | |
| Honeywell International Inc. | 8.13 | 11.00 | 13.67 | 11.49 | 14.06 | |
| Lockheed Martin Corp. | 7.81 | 8.44 | 9.95 | 11.12 | 9.12 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 5.14 | 3.61 | 3.06 | 1.66 | 3.63 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 4.62 | 3.58 | 3.93 | 1.59 | 2.96 | |
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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,952 ÷ 2,116 = 2.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | RTX Corp. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |