Analysis of Geographic Areas
RTX Corp. operates in 5 regions: United States; Europe; Asia Pacific; Middle East and North Africa; and Other regions.
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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Operating Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Area Asset Turnover
RTX Corp., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Europe | |||||
| Asia Pacific | |||||
| Middle East and North Africa | |||||
| Other regions |
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).
Asset turnover ratios across geographic areas demonstrate varying performance and trends over the five-year period. Generally, ratios increased across most regions, though the magnitude and consistency of these increases differ significantly.
- United States
- The United States exhibits a relatively stable asset turnover ratio, initially holding steady at 4.76 for 2021 and 2022. A slight decrease to 4.55 is observed in 2023, followed by increases to 5.19 in 2024 and 5.42 in 2025. This indicates improving asset utilization in recent years within this region.
- Europe
- Europe shows a consistent upward trend in asset turnover. Starting at 2.89 in 2021, the ratio increases to 3.42 in 2022, 4.02 in 2023, 4.62 in 2024, and finally reaches 4.79 in 2025. This represents a substantial improvement in asset efficiency over the period.
- Asia Pacific
- The Asia Pacific region demonstrates a similar, though less pronounced, upward trend. The ratio increases from 2.05 in 2021 to 2.22 in 2022, 2.70 in 2023, 3.10 in 2024, and 3.19 in 2025. While improving, the asset turnover remains lower than that of the United States and Europe.
- Middle East and North Africa
- The Middle East and North Africa region exhibits the most volatile pattern. A significant increase is seen from 1.05 in 2021 to 1.53 in 2022 and a dramatic jump to 4.78 in 2023, followed by 4.96 in 2024. However, the ratio declines to 3.45 in 2025, suggesting potential instability or a one-time event driving the earlier increases. Further investigation into the factors influencing this region’s performance is warranted.
- Other regions
- Asset turnover in other regions also shows an increasing trend, moving from 3.03 in 2021 to 3.51 in 2022, 3.92 in 2023, 4.82 in 2024, and 5.49 in 2025. This region’s performance is approaching that of the United States, indicating improved asset utilization.
Overall, asset turnover ratios are generally improving across all geographic areas. The Middle East and North Africa region presents the most significant fluctuation, requiring further scrutiny. The United States and Other regions demonstrate the highest ratios, while Europe and Asia Pacific show consistent, positive growth.
Area Asset Turnover: United States
RTX Corp.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = External net sales ÷ Long-lived assets
= ÷ =
The financial performance within the United States demonstrates a generally positive trend in asset utilization between 2021 and 2025. External net sales exhibited consistent growth, while long-lived assets increased at a more moderate pace. This dynamic is reflected in the area asset turnover ratio, which indicates the efficiency with which assets are employed to generate sales.
- External Net Sales
- External net sales increased from US$55,837 million in 2021 to US$74,778 million in 2025. Growth was relatively consistent from 2021 to 2023, with a slight dip in 2023 before accelerating significantly in 2024 and 2025. This suggests a strengthening of sales performance in the latter years of the period.
- Long-Lived Assets
- Long-lived assets experienced a steady increase over the five-year period, rising from US$11,731 million in 2021 to US$13,791 million in 2025. The rate of increase appears relatively stable, indicating a consistent level of investment in long-term assets.
- Area Asset Turnover
- The area asset turnover ratio remained stable at 4.76 in both 2021 and 2022. A slight decrease to 4.55 was observed in 2023, potentially attributable to the slower sales growth experienced that year. However, the ratio rebounded strongly in 2024, reaching 5.19, and continued to improve in 2025, reaching 5.42. This indicates increasing efficiency in asset utilization, with each dollar of long-lived assets generating more sales revenue in the later years of the period. The increase in the ratio from 2023 to 2025 suggests that sales growth outpaced the growth in long-lived assets.
Overall, the trends suggest improving operational efficiency within the United States. The increasing area asset turnover ratio, coupled with consistent sales growth, indicates effective asset management and a strengthening market position.
Area Asset Turnover: Europe
RTX Corp.; Europe; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = External net sales ÷ Long-lived assets
= ÷ =
The Europe area demonstrates a consistent positive trend in asset turnover alongside increasing sales and relatively stable long-lived assets over the five-year period. External net sales have grown from US$3,630 million in 2021 to US$5,438 million in 2025, indicating expanding revenue generation within the region. Long-lived assets have remained comparatively consistent, fluctuating between US$1,132 million and US$1,255 million, suggesting efficient utilization of existing resources.
- External Net Sales
- External net sales exhibit a steady increase throughout the period, with the most significant growth occurring between 2022 and 2023 (approximately 25%). While growth slows in 2024 and 2025, sales remain above the 2024 level, indicating sustained market presence and demand.
- Long-Lived Assets
- Long-lived assets show minimal variation. A slight decrease is observed from 2021 to 2022, followed by a modest increase in 2023. Values then decrease slightly in 2024 and 2025, returning to levels similar to those in 2022. This stability suggests that capital investment in the region has been moderate and aligned with sales growth.
- Area Asset Turnover
- Area asset turnover has increased consistently from 2.89 in 2021 to 4.79 in 2025. This indicates a growing efficiency in generating sales from the existing asset base. The rate of increase accelerates from 2022 to 2024, suggesting improved operational performance and asset utilization. The increase from 4.62 in 2024 to 4.79 in 2025, while positive, is less pronounced, potentially indicating a maturing efficiency level.
Overall, the Europe area demonstrates strong financial performance characterized by increasing sales and improving asset utilization. The consistent growth in asset turnover, coupled with stable long-lived assets, suggests effective management of resources and a positive trajectory for revenue generation within the region.
Area Asset Turnover: Asia Pacific
RTX Corp.; Asia Pacific; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = External net sales ÷ Long-lived assets
= ÷ =
The Asia Pacific region demonstrates a positive trend in both external net sales and area asset turnover from 2021 to 2025. External net sales have increased consistently over the five-year period, while long-lived assets have experienced more moderate fluctuations. The area asset turnover ratio, a key indicator of asset utilization efficiency, has shown substantial improvement.
- External Net Sales
- External net sales in the Asia Pacific region increased from US$1,748 million in 2021 to US$2,864 million in 2025. This represents a cumulative growth of approximately 63.8% over the period. The growth rate appears to be accelerating, with larger absolute increases observed in 2023, 2024, and 2025 compared to the earlier years.
- Long-Lived Assets
- Long-lived assets in the region exhibited a slight decrease from US$854 million in 2021 to US$801 million in 2022. However, these assets then increased to US$899 million by 2025. The overall increase in long-lived assets from 2021 to 2025 is approximately 5.3%. The growth in assets is less pronounced than the growth in sales, suggesting improved asset utilization.
- Area Asset Turnover
- The area asset turnover ratio increased steadily from 2.05 in 2021 to 3.19 in 2025. This indicates a significant improvement in the efficiency with which assets are being used to generate sales. The ratio increased by 55.6% over the five-year period. The accelerating growth in the ratio, particularly from 2022 onwards, suggests that the region is becoming increasingly effective at converting its investments in long-lived assets into revenue.
The combination of increasing sales and a rising area asset turnover ratio suggests strong operational performance and efficient asset management within the Asia Pacific region. The region’s ability to generate more sales from a relatively stable asset base is a positive indicator of financial health and growth potential.
Area Asset Turnover: Middle East and North Africa
RTX Corp.; Middle East and North Africa; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = External net sales ÷ Long-lived assets
= ÷ =
The Middle East and North Africa region demonstrates a significant increase in asset turnover over the observed period. Initially, external net sales were relatively stable, while long-lived assets decreased slightly. However, from 2022 onward, both sales and asset turnover experienced substantial growth, peaking in 2024 before moderating in 2025.
- External Net Sales
- External net sales exhibited a modest increase from US$136 million in 2021 to US$173 million in 2022. A substantial surge followed, reaching US$492 million in 2023 and US$486 million in 2024. Sales then decreased to US$348 million in 2025, though remaining significantly above the 2021 and 2022 levels.
- Long-Lived Assets
- Long-lived assets decreased from US$129 million in 2021 to US$113 million in 2022. This trend continued, albeit at a slower pace, reaching US$103 million in 2023 and US$98 million in 2024. A slight increase to US$101 million was observed in 2025. The relative stability of long-lived assets after 2022 likely contributed to the increasing asset turnover.
- Area Asset Turnover
- Area asset turnover increased dramatically throughout the period. Starting at 1.05 in 2021, it rose to 1.53 in 2022. The most significant increase occurred between 2022 and 2023, jumping to 4.78. This upward trend continued to 4.96 in 2024, before declining to 3.45 in 2025. The high asset turnover ratios in 2023 and 2024 suggest efficient utilization of assets to generate sales within the region. The decrease in 2025, while still high, warrants further investigation to determine the underlying causes, potentially related to the sales decline.
The region’s performance indicates a period of rapid growth and improved asset efficiency, followed by a moderation in both sales and turnover. Continued monitoring of these trends is recommended to understand the sustainability of the observed improvements.
Area Asset Turnover: Other regions
RTX Corp.; Other regions; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| External net sales | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = External net sales ÷ Long-lived assets
= ÷ =
The financial performance of this geographic area demonstrates a consistent positive trend over the five-year period from 2021 to 2025. External net sales and area asset turnover both exhibit growth, while long-lived assets remain relatively stable. This suggests increasing efficiency in asset utilization to generate revenue.
- External Net Sales
- External net sales increased steadily throughout the period, moving from US$3,037 million in 2021 to US$5,175 million in 2025. This represents a cumulative growth of approximately 70.4%. The rate of increase appears to accelerate over time, with larger absolute gains observed in later years.
- Long-Lived Assets
- Long-lived assets experienced minor fluctuations but remained generally consistent. Starting at US$1,003 million in 2021, the value decreased to US$962 million in 2022, then increased to US$984 million in 2023, followed by a decrease to US$927 million in 2024, and finally rose to US$942 million in 2025. These changes are relatively small in magnitude compared to the growth in net sales.
- Area Asset Turnover
- Area asset turnover, calculated as external net sales divided by long-lived assets, shows a clear upward trend. The ratio increased from 3.03 in 2021 to 5.49 in 2025. This indicates that the area is becoming increasingly efficient at generating sales from its asset base. The most significant increase occurred between 2023 and 2024, rising from 3.92 to 4.82, and continued strongly into 2025.
The combination of growing sales and stable asset levels results in a substantial improvement in area asset turnover. This suggests effective management of assets and a strengthening ability to convert investments into revenue within this geographic area.
External net sales
RTX Corp., external net sales by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Europe | |||||
| Asia Pacific | |||||
| Middle East and North Africa | |||||
| Other regions | |||||
| International | |||||
| Consolidated |
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).
External net sales demonstrate a consistent upward trajectory overall between 2021 and 2025. However, the growth is not uniform across all geographic regions. The United States represents the largest portion of sales and exhibits substantial growth, while international markets collectively contribute a significant and increasing share of revenue.
- United States
- Net sales in the United States increased from US$55,837 million in 2021 to US$74,778 million in 2025, representing a cumulative growth of approximately 33.8%. Growth was particularly strong between 2023 and 2024, increasing by roughly 17.8%, and continued at a solid pace into 2025. This region consistently accounts for the majority of consolidated net sales.
- Europe
- Europe experienced moderate growth in net sales, rising from US$3,630 million in 2021 to US$5,438 million in 2025, a cumulative increase of approximately 49.7%. While growth was present each year, the rate of increase slowed between 2024 and 2025, showing a slight decrease in sales.
- Asia Pacific
- Net sales in the Asia Pacific region showed consistent, albeit moderate, growth, increasing from US$1,748 million in 2021 to US$2,864 million in 2025, representing a cumulative growth of approximately 63.8%. The region demonstrates a steady expansion in contribution to overall sales.
- Middle East and North Africa
- The Middle East and North Africa region exhibited significant volatility. Sales increased substantially from US$136 million in 2021 to US$492 million in 2023, before decreasing to US$348 million in 2025. This suggests potential project-based revenue or sensitivity to regional economic factors.
- Other Regions
- Sales from other regions increased from US$3,037 million in 2021 to US$5,175 million in 2025, a cumulative growth of approximately 70.4%. This category demonstrates robust growth, indicating expanding market presence in less-defined geographic areas.
- International Markets (Combined)
- Combined international sales increased from US$8,551 million in 2021 to US$13,825 million in 2025, representing a cumulative growth of approximately 61.7%. The increasing proportion of international sales suggests a successful diversification strategy and growing global reach.
- Consolidated Sales
- Consolidated net sales increased from US$64,388 million in 2021 to US$88,603 million in 2025, a cumulative growth of approximately 37.7%. This growth is largely driven by the strong performance of the United States market, supplemented by increasing contributions from international regions.
In summary, the organization demonstrates a pattern of overall revenue growth, with the United States as the primary driver. International markets are collectively growing at a substantial rate, and while some regions exhibit volatility, the overall trend indicates successful geographic diversification.
Long-lived assets
RTX Corp., long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Europe | |||||
| Asia Pacific | |||||
| Middle East and North Africa | |||||
| Other regions | |||||
| International | |||||
| Consolidated |
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).
The geographic distribution of long-lived assets demonstrates a clear concentration within the United States, with a consistent upward trend over the analyzed period. While the United States represents the majority of the company’s long-lived assets, fluctuations are observed in international regions.
- United States
- Long-lived assets in the United States experienced consistent growth from US$11,731 million in 2021 to US$13,791 million in 2025, representing a cumulative increase of approximately 17.5%. The growth rate appears relatively stable year-over-year.
- Europe
- Europe exhibited a more volatile pattern. A decrease from US$1,255 million in 2021 to US$1,132 million in 2022 was followed by a partial recovery to US$1,207 million in 2023. Subsequent years show a slight decline, ending at US$1,135 million in 2025. Overall, the European asset base experienced a net decrease over the five-year period.
- Asia Pacific
- Asia Pacific demonstrated modest growth, increasing from US$854 million in 2021 to US$899 million in 2025. While generally trending upward, growth was not linear, with a slight decrease observed between 2021 and 2022. The region’s growth rate is considerably slower than that of the United States.
- Middle East and North Africa
- The Middle East and North Africa region represents a relatively small portion of the total asset base. Values fluctuated between US$129 million and US$101 million over the period, with a slight recovery in 2025 to US$101 million. The region’s asset value remained largely stable despite these fluctuations.
- Other Regions
- Long-lived assets in other regions showed a slight decrease from US$1,003 million in 2021 to US$942 million in 2025. Similar to Europe, this region experienced some year-over-year volatility, but the overall trend is downward.
- International
- The combined international asset base (Europe, Asia Pacific, Middle East and North Africa, and Other Regions) decreased from US$3,241 million in 2021 to US$3,077 million in 2025. This decrease is primarily driven by the declines in Europe and Other Regions, partially offset by growth in Asia Pacific. The international asset base represents approximately 20% of the consolidated total.
- Consolidated
- Consolidated long-lived assets increased from US$14,972 million in 2021 to US$16,868 million in 2025, representing a cumulative increase of approximately 12.7%. This growth is almost entirely attributable to the increase in assets held within the United States.
In summary, the company’s investment in long-lived assets is heavily weighted towards the United States, and this trend is strengthening. International regions exhibit varying performance, with Europe and Other Regions experiencing declines, while Asia Pacific shows modest growth. The Middle East and North Africa region remains relatively stable.