RTX Corp. (NYSE:RTX)

Current assets and adjusted current assets for the period ending December 31, 2021, through December 31, 2025, demonstrate a consistent upward trend. Both metrics exhibit growth over the five-year period, although the magnitude of increase varies year-over-year.

Overall Growth

Current assets increased from US$42,050 million in 2021 to US$60,332 million in 2025, representing a total growth of approximately 43.5%. Adjusted current assets experienced a similar increase, moving from US$42,525 million in 2021 to US$60,672 million in 2025, a growth of roughly 42.7%.

Year-over-Year Changes

The increase in current assets from 2021 to 2022 was relatively modest, at approximately 1.2%. Growth accelerated significantly between 2022 and 2023, with an increase of approximately 14.1%. This higher growth rate continued from 2023 to 2024 (approximately 5.6%), before reaching its peak increase from 2024 to 2025 (approximately 18.4%).

Adjusted current assets followed a similar pattern. The increase from 2021 to 2022 was approximately 1.3%. A substantial increase occurred between 2022 and 2023 (approximately 13.6%), followed by a moderate increase from 2023 to 2024 (approximately 5.9%), and a significant increase from 2024 to 2025 (approximately 17.9%).

Relationship Between Metrics

The difference between current assets and adjusted current assets remains relatively stable throughout the period, fluctuating between approximately US$470 million and US$600 million annually. This suggests that the adjustments made to current assets are consistent in their application and impact.

The observed acceleration in growth rates in both current and adjusted current assets, particularly in the later years of the period, warrants further investigation to determine the underlying drivers. Potential factors could include changes in working capital management, increased inventory levels, or acquisitions contributing to asset growth.

Total assets for the period exhibited fluctuations, beginning at US$161,404 million in 2021. A decrease was observed in 2022, with total assets reported at US$158,864 million. Subsequent years showed increases, reaching US$161,869 million in 2023, US$162,861 million in 2024, and culminating in US$171,079 million in 2025. Adjusted total assets mirrored this general trend, though with differing magnitudes of change.

Overall Trend

Both total assets and adjusted total assets demonstrate a generally increasing trajectory over the five-year period, despite a dip in 2022. The rate of increase appears to accelerate towards the end of the period, particularly in 2025.

Discrepancy Between Total and Adjusted Assets

A consistent difference exists between reported total assets and adjusted total assets throughout the period. In 2021, adjusted total assets exceeded reported total assets by US$475 million. This difference narrowed in 2022 to US$452 million, then widened again in 2023 to US$316 million, and continued to widen in 2024 to US$289 million. By 2025, the difference was US$340 million. The consistent positive adjustment suggests the presence of items that are reclassified or revalued to arrive at the adjusted figure.

Year-over-Year Changes

The largest year-over-year decrease in total assets occurred between 2021 and 2022, with a reduction of US$2,540 million. The largest year-over-year increase occurred between 2024 and 2025, with an increase of US$8,218 million. Adjusted total assets experienced a similar pattern, with the largest decrease between 2021 and 2022 (US$553 million) and the largest increase between 2024 and 2025 (US$8,269 million).

The adjustments to total assets appear to be relatively stable in magnitude, suggesting a consistent application of the adjustment methodology. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the financial position.

Total liabilities exhibited volatility over the five-year period. Initially decreasing from 2021 to 2022, they subsequently increased through 2025. Adjusted total liabilities mirrored this pattern, though with differing magnitudes of change.

Overall Trend in Total Liabilities

Total liabilities decreased from US$86,705 million in 2021 to US$84,650 million in 2022, representing a decline of approximately 2.4%. A subsequent increase was observed, with liabilities reaching US$100,424 million in 2023, US$100,903 million in 2024, and US$103,941 million in 2025. This represents a cumulative increase of approximately 20.0% from 2022 to 2025.

Overall Trend in Adjusted Total Liabilities

Adjusted total liabilities followed a similar trajectory to total liabilities. A decrease was noted from US$81,695 million in 2021 to US$81,071 million in 2022, a reduction of roughly 0.7%. Thereafter, adjusted liabilities rose to US$97,409 million in 2023, US$98,051 million in 2024, and US$100,393 million in 2025. This signifies a cumulative increase of approximately 23.6% from 2022 to 2025.

Difference Between Total and Adjusted Liabilities

The difference between total liabilities and adjusted total liabilities remained relatively consistent throughout the period, generally ranging between US$5,000 million and US$6,500 million. This suggests that the adjustments applied are systematic and do not represent a significant shift in the overall liability structure. The difference narrowed slightly in 2025 to US$3,548 million.

Rate of Change

The rate of increase in adjusted total liabilities exceeded that of total liabilities in both 2023 and 2024. However, the rate of increase slowed in 2025 for both metrics. This suggests a potential moderation in the growth of liabilities towards the end of the observed period.

The consistent difference between the two liability measures indicates a recurring adjustment is being applied. Further investigation into the nature of these adjustments would be necessary to fully understand their impact on the financial position.

Shareowners’ equity exhibited a slight decrease from 2021 to 2022, followed by a more substantial decline through 2023. A modest recovery occurred in 2024, and this positive trend continued into 2025, though not fully restoring equity to its 2021 level. Adjusted total equity mirrors this pattern, demonstrating similar fluctuations over the five-year period.

Overall Trend

Both shareowners’ equity and adjusted total equity experienced volatility between 2021 and 2025. While a decline was evident from 2021 to 2023, the latter half of the period showed signs of recovery. The adjusted total equity consistently reports a higher value than shareowners’ equity across all years, indicating the presence of adjustments increasing the reported equity position.

Year-over-Year Changes

From 2021 to 2022, shareowners’ equity decreased by approximately 0.8%, while adjusted total equity decreased by approximately 2.4%. The most significant decline in shareowners’ equity occurred between 2022 and 2023, with a decrease of approximately 17.8%. Adjusted total equity also decreased substantially during this period, falling by approximately 17.3%. The period from 2023 to 2024 saw a small increase in both metrics, approximately 0.5% for shareowners’ equity and 0.4% for adjusted total equity. The largest percentage increase occurred between 2024 and 2025, with shareowners’ equity rising by approximately 8.5% and adjusted total equity increasing by approximately 9.2%.

Equity Adjustment Impact

The difference between shareowners’ equity and adjusted total equity remained relatively consistent throughout the period, generally ranging between US$7 billion and US$8 billion. This suggests that the adjustments applied to total equity are systematic and do not fluctuate dramatically with changes in shareowners’ equity. The consistent application of these adjustments implies they relate to items not directly reflected in shareowners’ equity, such as accumulated other comprehensive income or deferred tax assets/liabilities.

The recovery observed in 2024 and 2025, while positive, did not fully offset the declines experienced in prior years. Further investigation into the nature of the equity adjustments and the underlying drivers of the fluctuations in shareowners’ equity would be necessary to provide a more comprehensive understanding of the company’s financial position.

The capitalization structure of the entity exhibits several notable trends between 2021 and 2025. Reported total debt increased significantly from 2021 to 2023, peaking at US$43,827 million, before declining in the subsequent two years. Shareowners’ equity experienced a decrease from 2021 to 2023, followed by a recovery and increase through 2025. Total reported capital remained relatively stable overall, with a slight downward trend observed from 2021 to 2024 before a modest increase in 2025.

Adjustments to the capitalization structure reveal a different pattern. Adjusted total debt mirrors the trend of reported debt, with a substantial rise to US$45,587 million in 2023 and subsequent declines. Adjusted total equity also decreased from 2021 to 2023, but showed a more pronounced recovery in 2024 and 2025 than reported equity. Adjusted total capital demonstrates a similar pattern to reported capital, with a slight decline from 2021 to 2024 and a subsequent increase in 2025.

Debt Levels

Reported total debt increased by approximately 13.8% between 2021 and 2023, before decreasing by 4.7% and 7.7% in 2024 and 2025 respectively. The adjusted debt figures show a similar trajectory, suggesting the adjustments are not significantly altering the overall debt trend. The difference between reported and adjusted debt remains relatively consistent across the period, averaging around US$2,000 million.

Equity Trends

Shareowners’ equity decreased by 7.6% between 2021 and 2023, then increased by 1.7% and 7.3% in 2024 and 2025. Adjusted equity shows a similar pattern, but with a more substantial recovery in the later years. The adjustments to equity are more significant than those to debt, with the difference between reported and adjusted equity fluctuating between approximately US$7,000 million and US$11,000 million.

Capital Structure Composition

The proportion of debt to total capital increased from approximately 30.1% in 2021 to 39.6% in 2023, based on reported figures, indicating increased financial leverage. This proportion then decreased to 36.4% in 2025. The adjusted figures show a similar trend, with the debt-to-capital ratio rising to 40.4% in 2023 and falling to 35.9% in 2025. The adjustments to the capital structure appear to amplify the observed changes in leverage.

Overall, the entity’s capitalization structure experienced volatility between 2021 and 2025, with increases in debt and subsequent declines. Adjustments to the financial items resulted in changes to the magnitude of these trends, particularly concerning equity, and influenced the observed leverage ratios.

Net income attributable to common shareowners exhibited volatility over the five-year period. Initial growth was followed by a decline and subsequent recovery. Adjusted net income demonstrated a different pattern, with a significant decrease in later years followed by substantial growth.

Net Income Trend

Net income attributable to common shareowners increased from US$3,864 million in 2021 to US$5,197 million in 2022, representing a growth of approximately 34.4%. A substantial decrease was then observed in 2023, with net income falling to US$3,195 million. This was followed by a recovery to US$4,774 million in 2024, and further growth to US$6,732 million in 2025. The 2025 value represents an increase of approximately 41.1% compared to 2024 and is the highest value recorded within the observed period.

Adjusted Net Income Trend

Adjusted net income began at US$5,805 million in 2021, but experienced a considerable decline to US$3,538 million in 2022, a decrease of roughly 39.2%. This downward trend continued in 2023, with adjusted net income reaching US$2,441 million. A modest increase was noted in 2024, rising to US$3,603 million. However, 2025 saw a dramatic increase in adjusted net income to US$8,946 million, representing a growth of approximately 148.4% compared to 2024. This value significantly exceeds the initial 2021 figure.

Relationship Between Net Income and Adjusted Net Income

In 2021 and 2022, adjusted net income exceeded reported net income. However, from 2023 through 2024, reported net income was higher than adjusted net income. The divergence between the two metrics became particularly pronounced in 2025, with adjusted net income substantially exceeding reported net income. This suggests the presence of significant adjustments impacting the reported earnings figure in the later years, particularly in 2025.

The substantial differences between net income and adjusted net income, particularly in 2025, warrant further investigation to understand the nature and impact of these adjustments. The volatility in both metrics suggests potential cyclicality or specific events influencing the company’s financial performance.