RTX Corp. (NYSE:RTX)

The overall liquidity profile exhibits a gradual tightening trend from early 2022 through early 2026, characterized by a steady decline in the ability to cover short-term obligations with liquid assets, followed by a modest stabilization in the latter part of the period.

Current Ratio

A downward trajectory is observed, starting at 1.16 in March 2022 and declining to a low of 0.99 between June and December 2024. This transition indicates a period where current liabilities slightly exceeded current assets. A marginal recovery occurred in 2025, peaking at 1.07 in September before settling at 1.02 by March 2026.

Quick Ratio

The quick ratio demonstrates a consistent decrease from 0.76 in March 2022 to a plateau of 0.60 observed between June 2024 and March 2025. The gap between the current ratio and the quick ratio suggests a significant reliance on inventory to meet current obligations. A slight improvement was noted in late 2025, with the ratio reaching 0.67 before ending the period at 0.65.

Cash Ratio

Cash coverage remained low throughout the analyzed timeframe, starting at 0.17 and reaching a minimum of 0.09 in June 2025. The ratio fluctuated within a narrow range, generally remaining between 0.10 and 0.16, indicating that cash and cash equivalents cover only a small fraction of immediate short-term liabilities.

The convergence of these three ratios suggests a systematic reduction in liquidity buffers. While the current ratio returned to a level above 1.0 by 2025, the persistent low levels of the quick and cash ratios highlight a structural dependency on non-cash current assets to maintain solvency.

The liquidity position is characterized by a consistent expansion in the scale of both current assets and current liabilities from March 2022 through March 2026. While the absolute volume of liquid resources grew significantly, current liabilities increased at a commensurate pace, resulting in a current ratio that has fluctuated narrowly around the 1.00 threshold.

Current Asset Growth

A sustained upward trajectory is observed in current assets, which rose from 40,740 million in March 2022 to 60,009 million by March 2026. This growth indicates a steady accumulation of short-term resources over the four-year period.

Current Liability Expansion

Current liabilities exhibited a similar growth pattern, increasing from 35,057 million in March 2022 to 58,579 million by March 2026. The near-parallel growth of liabilities relative to assets suggests that the expansion of short-term obligations was closely aligned with the increase in current asset holdings.

Current Ratio Dynamics

The current ratio started at a peak of 1.16 in March 2022 and trended downward over several quarters. A notable period of tightening occurred between June 2024 and December 2024, where the ratio remained constant at 0.99, indicating that current liabilities slightly exceeded current assets. Following this trough, a modest recovery is observed, with the ratio stabilizing between 1.02 and 1.07 through the first quarter of 2026.

The liquidity position of the organization experienced a gradual contraction between the first quarter of 2022 and the first quarter of 2025, followed by a modest recovery toward the end of 2025 and early 2026. Although total quick assets increased in absolute terms over the analyzed period, this growth was outpaced by a more significant rise in current liabilities, leading to a decline in the quick ratio from 0.76 to a floor of 0.60.

Quick Assets Progression

Total quick assets exhibited a general upward trajectory, rising from 26,682 million USD in March 2022 to a peak of 39,228 million USD in December 2025. The growth was relatively steady until early 2025, where a more pronounced increase in liquid assets occurred, contributing to a slight improvement in the liquidity ratio during the latter half of 2025.

Current Liabilities Expansion

Current liabilities increased consistently throughout the period, growing from 35,057 million USD in March 2022 to 58,579 million USD by March 2026. The steady accumulation of short-term obligations exerted downward pressure on the quick ratio, particularly between 2022 and 2024, as the growth rate of liabilities exceeded that of the most liquid assets.

Quick Ratio Trend Analysis

The quick ratio declined from 0.76 in March 2022 to 0.60, a level maintained consistently from June 2024 through March 2025. This indicates a prolonged period of constrained immediate liquidity. However, a recovery was observed in the second half of 2025, with the ratio climbing to 0.67 in September and December 2025, before settling at 0.65 in March 2026. The overall trend suggests that while the organization operates with a quick ratio below 1.0—indicating that quick assets do not fully cover current liabilities—there is evidence of recent stabilization and slight improvement in liquid asset management.

The liquidity profile demonstrates a tightening of the immediate cash position relative to short-term obligations over the analyzed period. While cash balances have remained volatile, the sustained growth in current liabilities has exerted downward pressure on the company's immediate solvency metrics.

Total Cash Assets

Cash holdings exhibited significant fluctuation, ranging from a low of 4,767 million US dollars in June 2022 to a peak of 7,435 million US dollars in December 2025. Despite periodic increases, the growth in cash reserves has been inconsistent and insufficient to offset the rise in short-term debt.

Current Liabilities

A consistent upward trajectory is observed in current liabilities, which grew from 35,057 million US dollars in March 2022 to 58,579 million US dollars by March 2026. This steady increase indicates a substantial expansion of short-term financial obligations over the four-year period.

Cash Ratio

The cash ratio reflects a general decline, beginning at 0.17 in March 2022 and reaching a period low of 0.09 in June 2025. Although the ratio recovered slightly to 0.12 by March 2026, the overall trend indicates a diminished capacity to cover current liabilities using only the most liquid assets. The widening gap between cash assets and current liabilities suggests a heightened reliance on other current assets or operational cash flow to meet short-term requirements.