Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

RTX Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Short-term borrowings	204)	183)	189)	625)	134)
Accounts payable	15,895)	12,897)	10,698)	9,896)	8,751)
Accrued employee compensation	3,308)	2,620)	2,491)	2,401)	2,658)
Other accrued liabilities	14,350)	14,831)	14,917)	10,999)	10,162)
Contract liabilities	21,615)	18,616)	17,183)	14,598)	13,720)
Long-term debt currently due	3,412)	2,352)	1,283)	595)	24)
Current liabilities	58,784)	51,499)	46,761)	39,114)	35,449)
Long-term debt, excluding currently due	34,288)	38,726)	42,355)	30,694)	31,327)
Operating lease liabilities, non-current	1,602)	1,632)	1,412)	1,586)	1,657)
Future pension and postretirement benefit obligations	2,067)	2,104)	2,385)	4,807)	7,855)
Other long-term liabilities	7,200)	6,942)	7,511)	8,449)	10,417)
Long-term liabilities	45,157)	49,404)	53,663)	45,536)	51,256)
Total liabilities	103,941)	100,903)	100,424)	84,650)	86,705)
Redeemable noncontrolling interest	36)	35)	35)	36)	35)
Preferred stock, $1 par value; none issued or outstanding	—)	—)	—)	—)	—)
Common stock, $1 par value	38,126)	37,434)	37,055)	37,939)	37,483)
Treasury stock, common shares at average cost	(26,881)	(27,112)	(26,977)	(15,530)	(12,727)
Retained earnings	56,718)	53,589)	52,154)	52,269)	50,265)
Unearned ESOP shares	—)	—)	(15)	(28)	(38)
Accumulated other comprehensive loss	(2,718)	(3,755)	(2,419)	(2,018)	(1,915)
Shareowners’ equity	65,245)	60,156)	59,798)	72,632)	73,068)
Noncontrolling interest	1,857)	1,767)	1,612)	1,546)	1,596)
Total equity	67,102)	61,923)	61,410)	74,178)	74,664)
Total liabilities, redeemable noncontrolling interest, and equity	171,079)	162,861)	161,869)	158,864)	161,404)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Overall, the liability and equity structure of the company demonstrates significant fluctuations over the five-year period. Total liabilities increased from US$86.7 billion in 2021 to US$103.9 billion in 2025, while total equity experienced a more volatile pattern, decreasing to US$61.4 billion in 2023 before recovering to US$67.1 billion in 2025. The overall size of the company, as measured by total liabilities plus equity, also increased over the period.

Short-Term Borrowings: Short-term borrowings exhibited considerable volatility. A substantial increase occurred between 2021 and 2022, rising from US$134 million to US$625 million. This was followed by a decline in subsequent years, stabilizing around US$200 million by 2025. This suggests a shift in short-term financing strategies.
Accounts Payable & Contract Liabilities: Accounts payable and contract liabilities consistently increased throughout the period. Accounts payable rose from US$8.75 billion in 2021 to US$15.89 billion in 2025, indicating a growing reliance on trade credit. Contract liabilities also showed a steady upward trend, increasing from US$13.72 billion to US$21.62 billion, potentially reflecting increased deferred revenue from long-term contracts.
Accrued Liabilities: Accrued employee compensation and other accrued liabilities both increased over the period, though with some fluctuation. Accrued employee compensation rose from US$2.66 billion to US$3.31 billion, while other accrued liabilities peaked at US$14.92 billion in 2023 before decreasing slightly to US$14.35 billion in 2025. These increases suggest potential growth in personnel costs and other operational obligations.
Long-Term Debt: Long-term debt, including both currently due and excluding currently due portions, demonstrated a complex pattern. While total long-term debt decreased from US$51.26 billion in 2021 to US$45.54 billion in 2022, it increased to US$53.66 billion in 2023 before decreasing again to US$45.16 billion in 2025. The portion currently due also increased significantly over the period, indicating a potential need for refinancing or increased short-term liquidity.
Pension & Postretirement Obligations: Future pension and postretirement benefit obligations experienced a substantial decrease, falling from US$7.86 billion in 2021 to US$2.07 billion in 2025. This suggests successful management of pension liabilities, potentially through plan freezes or lump-sum settlements.
Shareowners’ Equity: Shareowners’ equity exhibited significant volatility. It decreased from US$73.07 billion in 2021 to US$59.80 billion in 2023, primarily driven by a substantial increase in treasury stock. A partial recovery occurred in 2024 and 2025, reaching US$65.25 billion, but equity levels remained below those of the earlier years. The increase in treasury stock suggests significant share repurchase activity.
Retained Earnings: Retained earnings remained relatively stable, increasing modestly from US$50.27 billion in 2021 to US$56.72 billion in 2025. This indicates consistent profitability, although the growth was not substantial enough to offset the impact of share repurchases on overall equity.
Accumulated Other Comprehensive Loss: Accumulated other comprehensive loss increased throughout the period, from negative US$1.92 billion in 2021 to negative US$2.72 billion in 2025. This suggests unrealized losses in certain investments or hedging activities are impacting equity.

In conclusion, the company’s financial structure has undergone notable changes. While liabilities have generally increased, equity has experienced greater fluctuations, influenced by share repurchase programs and changes in pension obligations. The increases in accounts payable and contract liabilities suggest a growing scale of operations and deferred revenue recognition.

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RTX Corp. (NYSE:RTX)

Balance Sheet: Liabilities and Stockholders’ Equity