Financial statement analysis and common stock valuation

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a RTX Corp. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of RTX Corp. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Geographic Areas

RTX Corp. operates in 5 regions: United States; Europe; Asia Pacific; Middle East and North Africa; and Other regions.

• Area Asset Turnover
• External net sales
• Long-lived assets

Analysis of Profitability Ratios

Measures the income of RTX Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing RTX Corp. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about RTX Corp. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on RTX Corp. balance sheet.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of RTX Corp. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Analysis of Long-term (Investment) Activity Ratios
Quarterly Data

Measures how efficiently RTX Corp. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Analysis of Profitability Ratios
Quarterly Data

Measures the income of RTX Corp. relative to its revenues and invested capital.

• Profitability Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Liquidity Ratios

Measures the adequacy of RTX Corp. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio