Cash Flow Statement

The cash flow statement provides information about a company 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 the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

RTX Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (loss) from continuing operations	5,013)	3,380)	5,327)	4,145)	(2,928)
Depreciation and amortization	4,364)	4,211)	4,108)	4,557)	4,156)
Deferred income tax benefit	(47)	(402)	(1,663)	(88)	(99)
Stock compensation cost	437)	425)	420)	442)	330)
Net periodic pension and other postretirement income	(1,326)	(1,555)	(1,413)	(1,414)	(413)
Gain on sale of business, net of transaction costs	(415)	—)	—)	—)	—)
Debt extinguishment costs	—)	—)	—)	649)	—)
Goodwill impairment charge	—)	—)	—)	—)	3,183)
Accounts receivable	(175)	(1,805)	437)	(570)	1,318)
Contract assets	(2,414)	(753)	(234)	(1,594)	63)
Inventory	(1,474)	(1,104)	(1,575)	163)	412)
Other current assets	(402)	(1,161)	(1,027)	(566)	(445)
Accounts payable and accrued liabilities	1,508)	4,016)	2,075)	917)	(1,666)
Contract liabilities	1,872)	2,322)	846)	1,372)	1,129)
Change in operating capital	(1,085)	1,515)	522)	(278)	811)
Other operating activities, net	218)	309)	(133)	(871)	(706)
Adjustments to reconcile income (loss) from continuing operations to net cash flows provided by operating activities	2,146)	4,503)	1,841)	2,997)	7,262)
Net cash flows provided by operating activities	7,159)	7,883)	7,168)	7,142)	4,334)
Capital expenditures	(2,625)	(2,415)	(2,288)	(2,134)	(1,795)
Payments on customer financing assets	(218)	(117)	(150)	(231)	(280)
Receipts from customer financing assets	202)	212)	179)	389)	368)
Investments in businesses	—)	—)	(66)	(1,088)	(419)
Cash acquired in Raytheon merger	—)	—)	—)	—)	3,208)
Dispositions of businesses, net of cash transferred	1,795)	6)	94)	1,879)	2,556)
Increase in other intangible assets	(611)	(751)	(487)	(308)	(312)
(Payments) receipts from settlements of derivative contracts, net	(142)	14)	(205)	(16)	(32)
Other investing activities, net	65)	12)	94)	145)	49)
Net cash flows (used in) provided by investing activities	(1,534)	(3,039)	(2,829)	(1,364)	3,343)
Proceeds from long-term debt	—)	12,914)	1)	4,062)	2,004)
Distribution from discontinued operation	—)	—)	—)	—)	17,207)
Repayment of long-term debt	(2,500)	(578)	(3)	(4,254)	(16,082)
Proceeds from bridge loan	—)	10,000)	—)	—)	—)
Repayment of bridge loan	—)	(10,000)	—)	—)	—)
Debt extinguishment costs	—)	—)	—)	(649)	—)
Change in commercial paper, net	—)	(524)	518)	(160)	160)
Change in other short-term borrowings, net	(4)	87)	(29)	47)	(2,201)
Dividends paid on common stock	(3,217)	(3,239)	(3,128)	(2,957)	(2,732)
Repurchase of common stock	(444)	(12,870)	(2,803)	(2,327)	(47)
Net transfer to discontinued operations	—)	—)	—)	(71)	(2,033)
Other financing activities, net	(452)	(317)	(415)	(447)	(136)
Net cash flows used in financing activities	(6,617)	(4,527)	(5,859)	(6,756)	(3,860)
Net cash used in operating activities	—)	—)	—)	(71)	(728)
Net cash used in investing activities	—)	—)	—)	—)	(241)
Net cash provided by (used in) financing activities	—)	—)	—)	71)	(1,414)
Net cash used in discontinued operations	—)	—)	—)	—)	(2,383)
Effect of foreign exchange rate changes on cash and cash equivalents	(28)	18)	(42)	(1)	(22)
Net increase (decrease) in cash, cash equivalents and restricted cash	(1,020)	335)	(1,562)	(979)	1,412)
Cash, cash equivalents and restricted cash, beginning of year	6,626)	6,291)	7,853)	8,832)	7,420)
Cash, cash equivalents and restricted cash, end of year	5,606)	6,626)	6,291)	7,853)	8,832)

Based on: 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), 10-K (reporting date: 2020-12-31).

Net income from continuing operations: The net income exhibited significant volatility over the five-year period. Starting with a substantial loss in 2020, it rebounded to a profit in 2021 and 2022, peaking in 2022 before dipping in 2023, and recovering again in 2024. This pattern indicates fluctuations in operational performance, with notable recovery after the initial loss.
Depreciation and amortization: This expense remained relatively stable, fluctuating moderately between 4108 and 4557 million USD, reflecting consistent asset base and capital expenditure trends.
Deferred income tax benefit: The deferred tax benefit saw a major increase in 2022 compared to other years, which may suggest changes in tax positions or recognition of tax credits during that year, but returned closer to prior years’ levels thereafter.
Stock compensation cost: Stock-based compensation costs showed a slight upward trend from 330 million USD in 2020 to 437 million USD in 2024, indicating a gradual increase in stock incentives or share-based payments.
Net periodic pension and other postretirement income: Net pension and postretirement income remained negative and substantial throughout the period, indicating ongoing pension-related expenses impacting the income statement consistently.
Asset impairments and gains: There was a goodwill impairment charge reported only in 2020, while a gain on sale of business was recorded negatively in 2024. No other major impairments or gains appeared in the other years, suggesting isolated events.
Operating assets and liabilities: Accounts receivable and contract assets showed negative trends in the later years, especially 2023 and 2024, which could indicate collection issues or changes in revenue recognition. Inventory values turned negative from 2022 onward, indicating reductions or possible write-downs. Accounts payable and accrued liabilities increased significantly from 2021 through 2023, then decreased in 2024, suggesting changes in payment cycles or supplier financing. Similarly, contract liabilities increased overall, pointing to more customer prepayments or deferred revenues.
Change in operating capital: Operating capital changes fluctuated notably, with a negative figure in 2024 contrasting positive changes in prior years, which may affect cash flow from operations.
Net cash flows provided by operating activities: Operating cash flows showed strong performance, growing considerably from 2020 through 2023 before a slight decrease in 2024, indicating generally healthy cash generation from core operations despite income volatility.
Capital expenditures: Capital expenditures increased steadily over the period, from 1795 million USD in 2020 to 2625 million USD in 2024, denoting ongoing investments in property, plant, and equipment or other long-lived assets.
Investing activities: Net cash flows from investing activities were positive only in 2020, turning negative in subsequent years, reaching a maximum outflow in 2023, then improving somewhat in 2024. This reflects greater investment outlays and fewer disposals or divestitures in later years.
Financing activities: Net cash flows used in financing activities were negative in all years, evidencing sustained use of cash for debt repayments, dividends, and share repurchases. Notably, share repurchases peaked dramatically in 2023 before declining sharply in 2024. Debt proceeds increased significantly in 2023, including a large bridge loan which was repaid within the same year.
Cash balances and changes: Cash and equivalents peaked in 2021 before declining steadily through 2024. The net change in cash was positive only in 2020 and 2023, with decreases in other years indicating higher outflows relative to inflows. Foreign exchange effects on cash were generally minor but negative overall.
Summary of overall trends: The company experienced a marked recovery in net income from a large loss in 2020 to strong profits thereafter, though income volatility persisted. Operating cash flows remained robust, supporting ongoing capital investment and financing activities. Asset management indicators, such as accounts receivable and inventory, showed deterioration in later years. Investing cash flows reflected a shift toward increased capital spending and reduced disposals. Financing activities suggest active management of debt and capital return to shareholders, with heavy buyback activity peaking in 2023. The cash position declined steadily after 2021, highlighting pressure on liquidity despite operational cash generation.

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RTX Corp. (NYSE:RTX)

Cash Flow Statement