RTX Corp. (NYSE:RTX)

Debt to Equity Ratio

The debt to equity ratio demonstrates a significant decline from 1.18 in the first quarter of 2020 to a stable range around 0.44-0.49 throughout 2021 and early 2022. Beginning in late 2022, there is a discernible upward trend, reaching 0.73 by the fourth quarter of 2023, then slightly declining and stabilizing around 0.67 by the second quarter of 2025. This pattern indicates a reduction in reliance on debt relative to equity early on, followed by a gradual increase in leverage in recent periods.

Debt to Equity Ratio Including Operating Lease Liability

This ratio follows a similar trend to the standard debt to equity metric but with marginally higher values. It starts at 1.23 in early 2020, declines to approximately 0.45-0.51 through 2021 and early 2022, then increases sharply to 0.76 by the fourth quarter of 2023 before decreasing slightly to about 0.7 by mid-2025. This inclusion of operating lease liabilities shows consistently higher leverage but mirrors the overall directional movements.

Debt to Capital Ratio

The debt to capital ratio reveals a substantial decrease from 0.54 in the first quarter of 2020 to a range near 0.30 through 2021 and early 2022. From late 2022, the ratio climbs steadily, reaching approximately 0.42 by the last quarter of 2023. Thereafter, it remains relatively stable, fluctuating minimally between 0.40 and 0.41 through mid-2025. This indicates a lower proportion of debt within the company’s capital structure early on, with a gradual increase in debt proportion later.

Debt to Capital Ratio Including Operating Lease Liability

The pattern resembles that of the standard debt to capital ratio, but again with slightly elevated levels due to the inclusion of operating lease liabilities. Beginning at 0.55 and dropping to around 0.31-0.32 during 2021 and early 2022, the ratio rises to about 0.43 by the end of 2023 and remains stable near 0.41 throughout 2024 and into mid-2025. This reinforces the increase in overall leverage when operating leases are considered.

Debt to Assets Ratio

This ratio decreases from 0.33 at the start of 2020 to a stable range near 0.20 throughout 2021 and early 2022. It shows a moderate increase starting late 2022, peaking at 0.27 around the end of 2023, before slightly declining and stabilizing near 0.25 by mid-2025. The trend suggests the relative share of debt financing within the total asset base initially fell and then modestly increased in recent periods.

Debt to Assets Ratio Including Operating Lease Liability

The inclusion of operating lease liabilities results in a similar trend with slightly higher ratios overall. Starting at 0.35 in early 2020, the ratio remains level around 0.21 during 2021 and early 2022, rises to 0.28 by late 2023, and stabilizes near 0.26 by mid-2025. This expresses a consistent incremental burden of lease liabilities on the asset-related leverage ratios.

Financial Leverage

The financial leverage ratio, defined as the ratio of total assets to equity, declines notably from 3.54 in the first quarter of 2020 to around 2.19-2.26 from late 2021 through early 2023. Subsequently, the leverage increases reaching a peak of 2.73 by late 2023, then stabilizes slightly below this level (around 2.68) through mid-2025. This indicates an initial deleveraging followed by a gradual rise in asset-backed leverage relative to equity in the most recent quarters.

Total Debt

The total debt exhibited a sharp decline from US$46,319 million in March 2020 to approximately US$31,485 million by December 2021. This reduction appears stable with minor fluctuations until early 2023. Beginning March 2023, a notable increase in total debt is observed, reaching a peak of US$43,827 million by December 2023, followed by a gradual decrease to around US$41,978 million by June 2025.

Shareowners' Equity

Shareowners’ equity increased significantly from US$39,411 million at the start of the period in March 2020 to a high of roughly US$73,068 million in December 2021, reflecting strong growth in equity value. Thereafter, starting in late 2021 and continuing through much of 2023, equity values experienced a consistent decline, falling to approximately US$59,798 million by March 2024. Subsequently, a modest recovery can be seen, with equity rising gradually to near US$62,398 million by mid-2025.

Debt to Equity Ratio

The debt to equity ratio showed a substantial reduction during the initial period, decreasing from 1.18 in March 2020 to around 0.43 by the end of 2021. This indicates improved capital structure and reduced leverage. However, from early 2023 onward, the ratio rose steadily, peaking at 0.73 in March 2024, which corresponds with the period of rising total debt and declining equity. Post-peak, the ratio declined gradually to approximately 0.67 by mid-2025, suggesting partial stabilization in leverage levels.

Overall Insights

The data reveals an initial phase of deleveraging and equity growth through 2021, improving the company’s financial stability. The subsequent period reflects increased borrowing and pressure on equity, leading to a higher leverage ratio in early 2024. The slight recovery in equity and reduction in the debt to equity ratio in the later stages may indicate management’s efforts to rebalance the capital structure. The trends suggest that while the company maintained lower leverage and strengthened equity in the earlier years, recent periods saw a reversal requiring close monitoring moving forward.

The data reveals several distinct trends in the financial position over the observed periods.

Total debt (including operating lease liability)

The total debt decreased notably from the first quarter of 2020 through the end of 2021, starting at approximately 48,445 million USD and falling to around 33,142 million USD. This indicates a significant reduction in leverage during that period. From early 2022 onward, debt levels remained relatively stable with minor fluctuations, hovering mostly between 33,000 million and 35,000 million USD until late 2023. However, starting in the last quarter of 2023, a marked increase occurred, with debt rising to about 45,239 million USD by early 2024, followed by a slight decrease but remaining elevated through mid-2025, ending near 43,595 million USD.

Shareowners’ equity

Equity showed a strong upward trajectory from March 2020, beginning at approximately 39,411 million USD and peaking around 73,068 million USD by the end of 2021. This represents substantial growth in equity during this phase. Starting in early 2022, equity levels experienced a gradual decline and fluctuated in a narrower range, dropping towards 59,798 million USD by early 2024. Subsequently, equity exhibited modest recovery through mid-2025, rising back above 62,000 million USD.

Debt to equity ratio (including operating lease liability)

The debt-to-equity ratio initially decreased sharply from 1.23 in March 2020 to roughly 0.45 by the end of 2021, indicating a significant improvement in financial leverage and balance sheet strength. Throughout 2022 and 2023, this ratio fluctuated slightly around the 0.46 to 0.53 range, suggesting relative stability in leverage. From late 2023 into 2024, the ratio rose notably to 0.76, followed by a gradual decrease to about 0.70 by mid-2025. The temporary increase corresponds with the rise in total debt and concurrent decline in equity observed during this period, reflecting a shift toward higher leverage ratios before partial normalization.

Overall, the patterns highlight an initial phase of deleveraging and equity growth through 2021, contributing to improved financial stability. This was followed by a period of more stable capital structure in 2022 and 2023, before rising leverage and debt levels in late 2023 and early 2024 led to a temporary deterioration in the debt-to-equity ratio. Subsequent months show signs of modest balance sheet stabilization but with leverage remaining higher than the earlier low points.

Total Debt

Over the period from March 31, 2020, to June 30, 2025, total debt exhibits noticeable fluctuations. Initially, total debt decreases sharply from 46,319 million USD to 31,250 million USD by the fourth quarter of 2020. This level remains relatively stable, hovering near the low 31,000–34,000 million USD range through 2022 and early 2023. However, starting from late 2023, total debt rises significantly, peaking at 43,827 million USD at the end of 2023, before gradually declining to approximately 41,978 million USD by mid-2025.

Total Capital

Total capital shows a generally stable trend with some variation. It starts at 85,730 million USD in March 2020 and increases to over 104,000 million USD by late 2020. From 2021 through 2022, total capital remains around 101,000 to 107,000 million USD, indicating moderate stability. There is a slight decline observed from late 2023 onwards, with capital decreasing to about 102,816 million USD by mid-2025. Overall, total capital fluctuates but maintains a range mostly between 100,000 and 107,000 million USD.

Debt to Capital Ratio

The debt to capital ratio displays a marked decrease early in the period, dropping from a high of 0.54 in March 2020 to approximately 0.30 by the end of 2020. This reflects the reduction in total debt relative to the rising or stable total capital. Through 2021 and into 2022, the ratio remains relatively steady, averaging around 0.30 to 0.32. Starting in late 2023, there is a pronounced increase in the ratio, reaching approximately 0.42 by the end of 2023 and maintaining a level close to 0.40 through mid-2025. This trend suggests an increase in leverage during the latter periods, driven by growing total debt and somewhat flat or slightly declining total capital.

General Observations

The data suggest that the company initially pursued debt reduction strategies, lowering leverage substantially by the end of 2020. Following this, leverage and total debt remained stable for a period, reflecting relative financial steadiness. In recent quarters, however, there is a resurgence in debt levels accompanied by a rising debt-to-capital ratio, indicating a shift toward higher financial leverage. Meanwhile, total capital has experienced minor fluctuations but does not increase proportionally with debt, contributing to the elevated leverage ratio.

Total Debt (including operating lease liability)

The total debt exhibits a notable decline from March 31, 2020, when the amount was approximately $48.4 billion, to around $33.3 billion by December 31, 2020. Following this, the debt levels largely stabilize within the $32 billion to $35 billion range through December 31, 2022. From early 2023, the debt begins rising again, reaching a peak of $45.2 billion by December 31, 2023, before showing some fluctuations around the mid $42 billion to mid $43 billion range in 2024 and mid 2025.

Total Capital (including operating lease liability)

Total capital shows an increasing trend from $87.9 billion at March 31, 2020, rising steadily to about $106.2 billion by December 31, 2020. The capital then mildly fluctuates but generally remains in the range of $103 billion to $109 billion until early 2023. Subsequently, a slight dip occurs toward the end of 2023 and through 2024, with capital values hovering near $102 billion to $105 billion by mid 2025.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio decreases significantly from 0.55 at the end of the first quarter of 2020 to approximately 0.31 by the end of 2020, demonstrating a reduction in leverage relative to capital. This lower leverage persists with only moderate fluctuations around 0.31 to 0.34 through early 2023. Beginning in 2023, the ratio rises sharply reaching 0.43 by the end of 2023. After this peak, the ratio stabilizes somewhat, maintaining a level around 0.41 to 0.42 through mid 2025. This pattern suggests an overall shift toward higher leverage in the recent periods compared to the low levels observed during 2020 to early 2023.

Overall Trends and Insights

The data indicates an initial phase of significant debt reduction and capital growth that improved the company's leverage profile through 2020. This trend reflects a conservative fiscal approach or debt repayment focus during that period. From 2023 onwards, the company appears to have taken on additional debt, resulting in an increase in the debt-to-capital ratio, potentially indicating increased borrowing or capital restructuring. Meanwhile, total capital remains relatively stable but displays subtle declines in certain periods, which may suggest asset revaluation, capital reallocation, or other balance sheet adjustments. The relatively stable but elevated debt to capital ratio in the last recorded periods points to a more leveraged position which warrants monitoring for associated financial risk and cost of capital implications.

Total Debt

Total debt exhibits a notable decline from US$46,319 million at the end of Q1 2020 to approximately US$31,485 million by Q4 2021, indicating a substantial reduction over this period. Following this trough, total debt shows increased volatility with a general rising trend starting in Q1 2023, peaking at US$43,827 million in Q4 2023. Afterward, total debt stabilizes somewhat, fluctuating around US$41,300 million to US$41,978 million toward mid-2025.

Total Assets

Total assets start at US$139,572 million in Q1 2020 and rapidly increase to over US$161,000 million by mid-2020, after which asset levels stabilize, fluctuating modestly between approximately US$158,000 million and US$164,000 million over the subsequent quarters. Notably, total assets maintain relative stability from Q2 2021 through mid-2025, showing minor variations without significant upward or downward trends.

Debt to Assets Ratio

The debt to assets ratio declines sharply from 0.33 in Q1 2020 to around 0.20 by Q3 2020, reflecting the rapid deleveraging alongside growing total assets during this period. The ratio remains stable around 0.20 to 0.22 through 2022 and early 2023. A discernible upward shift occurs starting from Q1 2023, with the ratio rising to approximately 0.27 by Q4 2023, driven by the increase in total debt against relatively stable asset levels. Subsequently, the ratio slightly decreases but remains elevated around 0.25 by mid-2025, indicating a moderately higher leverage position compared to the stable low in prior years.

Summary of Trends

Overall, the data reflect a period of significant debt reduction and asset growth in the early quarters of 2020, which improved the leverage position substantially. This deleveraging phase was followed by a plateau in asset size and a cautiously rising trend in total debt starting in early 2023, reversing some deleveraging gains and leading to a moderate increase in leverage ratios. These movements suggest an evolving capital structure that initially prioritized debt reduction but has recently shifted toward higher debt usage relative to assets.

The financial data shows notable trends in total debt, total assets, and the debt-to-assets ratio over the observed periods. A detailed analysis follows.

Total Debt (including operating lease liability)

Total debt exhibited a significant decline from US$48,445 million as of March 31, 2020, to around US$33,000 million by mid-2021. This represents a substantial reduction in financial leverage during that period. Subsequently, debt levels remained relatively stable, fluctuating slightly but staying near the US$33,000 to US$35,000 million range through late 2022.

From early 2023 onward, total debt began to rise steadily, reaching approximately US$45,595 million by June 30, 2025. This upward trend indicates increasing borrowing or recognition of lease liabilities, reversing much of the prior deleveraging effort.

Total Assets

Total assets increased sharply from US$139,572 million in March 2020 to approximately US$162,000 million by the end of 2020. Thereafter, asset levels stabilized, maintaining a narrow range between roughly US$158,000 and US$164,800 million throughout 2021 and 2022.

From early 2023, total assets demonstrated a gradual increase, culminating near US$167,139 million by June 2025. This reflects either growth in holdings, acquisitions, or asset revaluations occurring over the later period.

Debt to Assets Ratio (including operating lease liability)

The debt-to-assets ratio fell markedly from 0.35 in March 2020 to approximately 0.21 by the middle of 2020, consistent with the rapid debt reduction against a backdrop of rising assets. This lower leverage was maintained fairly consistently through 2021 and into late 2022, fluctuating only modestly between 0.21 and 0.22.

Starting in early 2023, the ratio began to increase, reaching about 0.28 by early 2024. Following this peak, a slight downward correction brought the ratio back to about 0.26 by mid-2025. This pattern corresponds with the rising debt levels outpacing slightly the asset growth during that time frame.

In summary, the company initially pursued a deleveraging strategy evident in decreasing total debt and improving debt-to-assets ratio through 2021. Subsequent years saw an uptick in borrowing alongside steady asset growth, resulting in a moderate increase in financial leverage. The overall asset base expanded moderately over the entire period, indicating ongoing investment or asset accumulation activities alongside evolving debt management policies.

The total assets of the company show relative stability over the observed periods, fluctuating within a range without strong upward or downward trends. Starting at approximately 139.6 billion US dollars in the first quarter of 2020, the assets peaked around 167.1 billion by mid-2025. Despite some minor quarterly variations, the overall asset base maintains a generally steady profile throughout the timeframe.

Shareowners’ equity exhibits more pronounced variation than total assets. The equity increased significantly from about 39.4 billion US dollars in the first quarter of 2020 to a high exceeding 72 billion in late 2020 and early 2021. Following this peak, equity declined over several quarters to near 58.9 billion by late 2024, showing a notable contraction. The last few quarters indicate a modest recovery, rising back toward 62.4 billion by mid-2025. This pattern suggests a cycle of equity accumulation followed by reduction and partial rebound.

The financial leverage ratio, defined as the ratio of total assets to equity, correspondingly reflects the movements in equity relative to assets. Initially starting at a high leverage of 3.54 in early 2020, the ratio declined sharply during 2020, stabilizing around 2.2 to 2.3 throughout 2021 and into early 2023. From mid-2023 onward, the leverage ratio increases again up to around 2.7 by the end of 2024, before leveling off near 2.68 in mid-2025. This U-shaped pattern coincides with the changes in equity, where increases in equity lowered leverage and subsequent decreases in equity raised leverage, assuming assets remained relatively stable.

Overall, the financial position shows asset stability accompanied by fluctuating equity levels, which in turn drive the leverage ratios. The recent rise in leverage after a period of decline may warrant attention regarding capital structure and risk. However, the stabilization in the most recent periods suggests the company may have reached a new equilibrium in its balance sheet composition.

Total assets

Relatively stable across quarters, with slight upward trend from 139.6 billion to 167.1 billion US dollars over five years.

Shareowners’ equity

Sharp increase in 2020, peaking above 72 billion US dollars, followed by a decline to near 59 billion by late 2024, then partial recovery.

Financial leverage

High at start of 2020 (3.54), declining to around 2.2 - 2.3 through 2021-2023, rising back to about 2.7 by end of 2024, and stabilizing thereafter.