RTX Corp. (NYSE:RTX)

Current Ratio

The current ratio showed a slight fluctuation over the observed periods. Initially, it remained stable at 1.17 during the first and second quarters of 2021, followed by a marginal increase to 1.23 by the third quarter of 2021. It then experienced a gradual decline through 2022, stabilizing around 1.09 to 1.10. In 2023, the ratio continued to decrease, hitting a low near 1.03 in the third quarter, before modestly recovering to just above 1.00 by the end of 2024 and early 2025. Overall, the current ratio indicates a consistent ability to meet short-term liabilities, although the trend suggests a slight weakening in liquidity over time with some recovery in the latest periods.

Quick Ratio

The quick ratio followed a downward trajectory across the timeline. Starting at 0.79 in early 2021, it peaked slightly at 0.82 in the third quarter of 2021 but then steadily declined through subsequent quarters. By late 2022, the ratio dropped to approximately 0.69, and this declining trend continued into 2023, with the ratio reaching as low as 0.63. Further decreases were noted in 2024, with values stabilizing near 0.60. By the first half of 2025, a minor increase to 0.67 was observed. This pattern reflects a decreasing level of liquid assets excluding inventories relative to current liabilities, indicating potential tightening of near-cash asset availability to cover short-term obligations.

Cash Ratio

The cash ratio exhibited a notable downward trend from 0.24 in the first quarter of 2021 to about 0.17 by early 2022. It briefly fluctuated in mid to late 2022, around 0.14 to 0.16, followed by a continuing decrease throughout 2023 and 2024. The lowest ratios were recorded near 0.09 to 0.12 during late 2024 and early 2025, with a slight increase to 0.11 in the second quarter of 2025. This decline points to a decreasing proportion of actual cash and cash equivalents available relative to current liabilities, highlighting a reduction in the most liquid assets on hand to meet immediate financial commitments over the observed periods.

Current Assets

The current assets display a generally upward trend over the examined periods. Initial values around 42,500 million USD showed some fluctuations through 2021 and early 2022, but from 2023 onwards, there was a consistent increase, reaching over 57,000 million USD by late 2025. This growth signals an improvement in the company's short-term resource base available to meet obligations.

Current Liabilities

Current liabilities also rose over the same timeframe but at a somewhat uneven rate. Starting slightly above 36,300 million USD in early 2021, liabilities rose steadily with some volatility, peaking near 54,300 million USD by late 2025. The increase in liabilities outpaces that of current assets in several periods, implying tighter short-term obligations for the company.

Current Ratio

The current ratio, a liquidity measure, generally moved downward with notable variability. Early periods from 2021 to mid-2022 showed values above 1.1, suggesting adequate short-term liquidity. However, from late 2023 through 2024, the ratio dropped below 1 on multiple occasions, indicating periods when current liabilities may have exceeded current assets, which could pose liquidity challenges. The ratio slightly improved toward early 2025, returning to just above 1.00, reflecting a cautious recovery in liquidity.

Summary

Overall, the company experienced growth in both current assets and liabilities, with an emphasis on increasing liabilities that periodically narrowed the margin of liquidity. The fluctuating current ratio highlights intermittent periods of potential liquidity pressure, notwithstanding the eventual stabilization near a ratio of 1. Maintaining current ratio levels close to or above 1 is critical for ensuring the company can meet its short-term obligations without distress.

The financial data reveals several notable trends in the liquidity position over the observed quarters. Total quick assets exhibit fluctuations but generally demonstrate a gradual upward trajectory from March 31, 2021, through September 30, 2025. Starting at approximately 28,854 million US dollars, quick assets show some moderate declines and plateaus in early 2022, followed by more consistent increases from early 2023 onward, peaking towards the end of the projection period at over 35,000 million US dollars.

Current liabilities display a clear upward trend throughout the same timeframe. Beginning around 36,359 million US dollars, current liabilities increase steadily, with occasional sharper increments particularly noticeable towards the latter quarters. By September 30, 2025, current liabilities approach approximately 53,234 million US dollars, indicating a growing short-term financial obligation burden on the company.

The interaction between total quick assets and current liabilities is reflected in the quick ratio, which serves as an indicator of short-term liquidity health. The quick ratio begins at around 0.79 in early 2021 but exhibits a declining trend through 2022 and remains relatively low throughout 2023 and 2024, fluctuating between 0.6 and 0.64. This decline signifies a weakening in the company’s immediate liquidity position relative to its short-term liabilities. Notably, a slight recovery is visible in the last observed period, where the quick ratio increases to approximately 0.67, though it remains below the initial level at the start of the series.

Overall, the data points to a scenario where quick assets have increased but not at a pace sufficient to keep up with the rapid growth in current liabilities, resulting in a deterioration of the quick ratio over the long term. This pattern suggests increasing liquidity risk, and while the modest uptick in the last quarter may imply some improvement, the relative position is still weaker compared to the earliest period analyzed.

The analysis of the financial data reveals several notable trends across the observed periods. Total cash assets demonstrated a fluctuating pattern with an overall declining tendency from early 2021 through mid-2025. Initial values near 8,579 million US dollars decreased in the following two years, reaching a low around 4,767 million by mid-2022. Although there were intermittent recoveries, such as increases toward late 2022 and late 2023, the subsequent periods saw declines again ending near 4,782 million in the third quarter of 2025, indicating a decrease in cash reserves over time.

Current liabilities presented a generally upward trajectory throughout the analyzed quarters. Starting slightly above 36,000 million US dollars at the beginning of 2021, liabilities increased steadily, peaking close to 54,332 million by mid-2025. This rise in liabilities may suggest expanding short-term financial obligations or increased operational leverage over the period.

The cash ratio, representing the proportion of cash assets to current liabilities, exhibited a consistent downward trend. Early values around 0.24 gradually diminished to approximately 0.09 by the third quarter of 2025. This decline in the cash ratio reflects a growing disparity between cash holdings and current liabilities, potentially indicating reduced liquidity buffer and higher short-term risk exposure.

Overall, the observed financial data suggests a scenario where liquidity decreased alongside an increase in current liabilities. While total cash assets showed intermittent recoveries, the general direction was downward. The widening gap between cash and liabilities, as captured by the cash ratio, points to a potential strain on short-term financial flexibility.

Total Cash Assets

Fluctuated with an overall decrease from 8,579 million to around 4,782 million US dollars, indicating reduced liquidity reserves.

Current Liabilities

Increased steadily from approximately 36,359 million to over 54,000 million US dollars, showing a rise in short-term obligations.

Cash Ratio

Declined from 0.24 to 0.09, reflecting a diminishing proportion of readily available cash relative to liabilities, suggesting increased liquidity risk.