Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
RTX Corp., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency ratios presented demonstrate a general trend of increasing leverage throughout the observed period, followed by a stabilization and slight decrease in the most recent quarters. Initially, ratios remained relatively stable between March 31, 2022, and December 31, 2022. A noticeable increase in leverage occurred in the first half of 2023, with a subsequent leveling off and modest decline towards the end of the period analyzed.
- Debt to Equity
- The debt to equity ratio exhibited a gradual increase from 0.43 in March 2022 to 0.73 in December 2023. Following this peak, the ratio decreased slightly to 0.58 by December 2025. The inclusion of operating lease liabilities results in a similar pattern, though with slightly higher values, peaking at 0.76 in December 2023 and declining to 0.61 by December 2025.
- Debt to Capital
- The debt to capital ratio followed a similar trajectory to debt to equity, increasing from 0.30 in March 2022 to 0.42 in December 2023. Like debt to equity, it then showed a slight decrease, reaching 0.37 by December 2025. Including operating lease liabilities, the ratio increased from 0.31 to 0.43 over the same period, and then decreased to 0.38 by December 2025.
- Debt to Assets
- The debt to assets ratio also increased throughout 2023, rising from 0.20 in March 2022 to 0.28 in December 2023. This ratio then experienced a modest decline, ending at 0.23 in December 2025. The inclusion of operating lease liabilities mirrors this trend, with a peak of 0.28 in December 2023 and a subsequent decrease to 0.24 by December 2025.
- Financial Leverage
- Financial leverage, measured as total assets to total equity, increased consistently from 2.20 in March 2022 to 2.73 in June 2024. It then stabilized, fluctuating between 2.61 and 2.71 before ending at 2.62 in December 2025. This indicates a growing reliance on debt financing relative to equity throughout much of the period, with a recent trend towards stabilization.
Overall, the observed trends suggest a period of increased financial leverage, peaking in late 2023, followed by a period of stabilization and a slight reduction in leverage ratios. The inclusion of operating lease liabilities consistently results in higher leverage ratios compared to those calculated excluding these liabilities, highlighting their impact on the company’s financial structure.
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Debt Ratios
Debt to Equity
RTX Corp., debt to equity calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term borrowings | 204) | 215) | 1,635) | 212) | 183) | 220) | 231) | 166) | 189) | 1,170) | 1,076) | 224) | 625) | 2,195) | 113) | 140) | |||||
| Long-term debt currently due | 3,412) | 584) | 2,084) | 2,844) | 2,352) | 3,113) | 1,617) | 344) | 1,283) | 1,389) | 1,554) | 1,545) | 595) | 193) | 26) | 24) | |||||
| Long-term debt, excluding currently due | 34,288) | 38,260) | 38,259) | 38,244) | 38,726) | 38,823) | 40,303) | 42,334) | 42,355) | 32,701) | 32,723) | 32,717) | 30,694) | 31,059) | 31,274) | 31,308) | |||||
| Total debt | 37,904) | 39,059) | 41,978) | 41,300) | 41,261) | 42,156) | 42,151) | 42,844) | 43,827) | 35,260) | 35,353) | 34,486) | 31,914) | 33,447) | 31,413) | 31,472) | |||||
| Shareowners’ equity | 65,245) | 64,514) | 62,398) | 61,516) | 60,156) | 61,114) | 58,985) | 60,485) | 59,798) | 69,596) | 72,480) | 72,795) | 72,632) | 70,187) | 70,441) | 72,462) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 0.58 | 0.61 | 0.67 | 0.67 | 0.69 | 0.69 | 0.71 | 0.71 | 0.73 | 0.51 | 0.49 | 0.47 | 0.44 | 0.48 | 0.45 | 0.43 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 9.92 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | 2.03 | 2.01 | 2.18 | 2.14 | 1.97 | 1.95 | 2.18 | 2.15 | 1.94 | 1.81 | 2.07 | 2.04 | 2.33 | 2.34 | 2.35 | 2.20 | |||||
| Eaton Corp. plc | 0.51 | 0.57 | 0.59 | 0.54 | 0.50 | 0.49 | 0.51 | 0.48 | 0.49 | 0.50 | 0.52 | 0.50 | 0.51 | 0.56 | 0.59 | 0.58 | |||||
| GE Aerospace | 1.10 | 1.11 | 0.99 | 1.02 | 1.00 | 1.06 | 1.06 | 0.69 | 0.77 | 0.73 | 0.70 | 0.71 | 0.89 | 0.97 | 0.94 | 0.86 | |||||
| Honeywell International Inc. | 2.49 | 2.21 | 2.27 | 1.88 | 1.67 | 1.77 | 1.65 | 1.53 | 1.29 | 1.18 | 1.24 | 1.13 | 1.17 | 0.96 | 1.09 | 1.05 | |||||
| Lockheed Martin Corp. | 3.23 | 3.59 | 4.06 | 3.04 | 3.20 | 2.68 | 3.12 | 2.92 | 2.55 | 1.88 | 1.90 | 1.62 | 1.68 | 0.96 | 1.02 | 1.16 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Shareowners’ equity
= 37,904 ÷ 65,245 = 0.58
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a generally increasing trend, punctuated by a significant rise in late 2022 and early 2023, followed by a subsequent moderation. This indicates a shifting capital structure over the observed timeframe.
- Initial Trend (Mar 31, 2022 – Dec 31, 2022)
- The debt to equity ratio began at 0.43 and generally increased, reaching 0.48 by September 30, 2022. A slight decrease to 0.44 was observed by December 31, 2022, but the overall trend during this period was upward, suggesting increasing reliance on debt financing relative to equity.
- Significant Increase (Mar 31, 2023 – Dec 31, 2023)
- A substantial increase in the ratio occurred between March 31, 2023, and December 31, 2023, rising from 0.47 to 0.73. This represents the most pronounced change in the period, indicating a considerable increase in debt relative to equity during this time. The increase in total debt was more significant than any decrease in shareowners’ equity during this period.
- Moderation and Stabilization (Jan 1, 2024 – Dec 31, 2025)
- Following the peak of 0.73, the debt to equity ratio exhibited a moderating trend. It decreased to 0.58 by December 31, 2025. While fluctuations were present, the ratio remained relatively stable between 0.67 and 0.71 for the majority of 2024, before declining in the latter part of the period. This suggests a potential effort to rebalance the capital structure or a stabilization of debt levels.
- Shareowners’ Equity Impact
- A notable decrease in shareowners’ equity occurred between September 30, 2023 (69,596) and December 31, 2023 (59,798), contributing to the sharp increase in the debt to equity ratio during that period. While equity levels recovered somewhat in subsequent quarters, they did not fully return to prior levels.
- Total Debt Impact
- Total debt increased significantly between September 30, 2022 (33,447) and December 31, 2023 (43,827). While debt levels fluctuated, they generally remained elevated throughout 2024 and 2025, though a slight decrease was observed towards the end of the analyzed period.
In summary, the debt to equity ratio experienced a period of growth followed by a stabilization and slight decline. The most significant change occurred in late 2022 and early 2023, driven by a combination of increased debt and decreased equity. The subsequent period suggests a potential shift towards managing the debt to equity ratio, although it remains higher than at the beginning of the analyzed timeframe.
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Debt to Equity (including Operating Lease Liability)
RTX Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term borrowings | 204) | 215) | 1,635) | 212) | 183) | 220) | 231) | 166) | 189) | 1,170) | 1,076) | 224) | 625) | 2,195) | 113) | 140) | |||||
| Long-term debt currently due | 3,412) | 584) | 2,084) | 2,844) | 2,352) | 3,113) | 1,617) | 344) | 1,283) | 1,389) | 1,554) | 1,545) | 595) | 193) | 26) | 24) | |||||
| Long-term debt, excluding currently due | 34,288) | 38,260) | 38,259) | 38,244) | 38,726) | 38,823) | 40,303) | 42,334) | 42,355) | 32,701) | 32,723) | 32,717) | 30,694) | 31,059) | 31,274) | 31,308) | |||||
| Total debt | 37,904) | 39,059) | 41,978) | 41,300) | 41,261) | 42,156) | 42,151) | 42,844) | 43,827) | 35,260) | 35,353) | 34,486) | 31,914) | 33,447) | 31,413) | 31,472) | |||||
| Operating lease liabilities, non-current | 1,602) | 1,650) | 1,617) | 1,646) | 1,632) | 1,592) | 1,415) | 1,410) | 1,412) | 1,523) | 1,570) | 1,624) | 1,586) | 1,539) | 1,593) | 1,627) | |||||
| Total debt (including operating lease liability) | 39,506) | 40,709) | 43,595) | 42,946) | 42,893) | 43,748) | 43,566) | 44,254) | 45,239) | 36,783) | 36,923) | 36,110) | 33,500) | 34,986) | 33,006) | 33,099) | |||||
| Shareowners’ equity | 65,245) | 64,514) | 62,398) | 61,516) | 60,156) | 61,114) | 58,985) | 60,485) | 59,798) | 69,596) | 72,480) | 72,795) | 72,632) | 70,187) | 70,441) | 72,462) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.61 | 0.63 | 0.70 | 0.70 | 0.71 | 0.72 | 0.74 | 0.73 | 0.76 | 0.53 | 0.51 | 0.50 | 0.46 | 0.50 | 0.47 | 0.46 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Eaton Corp. plc | 0.54 | 0.60 | 0.62 | 0.58 | 0.53 | 0.53 | 0.55 | 0.51 | 0.51 | 0.52 | 0.54 | 0.53 | 0.53 | 0.59 | 0.62 | 0.60 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareowners’ equity
= 39,506 ÷ 65,245 = 0.61
2 Click competitor name to see calculations.
The debt to equity ratio, including operating lease liabilities, exhibits a generally increasing trend over the observed period, with a notable surge in late 2022 and early 2023. Subsequent quarters show some stabilization and a slight decrease, though the ratio remains elevated compared to earlier periods.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The debt to equity ratio fluctuated between 0.46 and 0.50 during this timeframe. It began at 0.46, increased to 0.47, then 0.50, before decreasing slightly to 0.46 by the end of the year. This suggests a relatively stable, though modestly increasing, reliance on debt financing relative to equity.
- Significant Increase (Mar 31, 2023 – Dec 31, 2023)
- A substantial increase in the ratio is observed starting in March 2023, reaching 0.76 by December 2023. This indicates a significant rise in debt relative to equity during this period. The increase from 0.50 in March 2023 to 0.76 in December 2023 represents a considerable shift in the company’s capital structure.
- Stabilization and Slight Decline (Mar 3, 2024 – Dec 31, 2025)
- Following the peak in December 2023, the ratio experienced a period of stabilization and a gradual decline. It decreased from 0.76 to 0.61 over the subsequent quarters. While still higher than the levels observed before March 2023, this suggests a potential effort to moderate the increase in debt or improve equity levels. The ratio remained relatively stable between 0.63 and 0.74 during this period.
- Total Debt and Shareowners’ Equity Trends
- The increase in the debt to equity ratio correlates with an increase in total debt, particularly the significant jump observed between September 2022 and December 2023. Simultaneously, shareowners’ equity experienced a decrease, most notably between September 2023 and December 2023, contributing to the higher ratio. While equity has shown some recovery in later periods, it has not fully offset the increase in debt.
In summary, the company’s debt to equity ratio has undergone a notable transformation, moving from a relatively stable position to a significantly leveraged state, followed by a period of stabilization and modest improvement. The observed trends suggest a potential shift in financing strategies and warrant further investigation into the underlying drivers of these changes.
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Debt to Capital
RTX Corp., debt to capital calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term borrowings | 204) | 215) | 1,635) | 212) | 183) | 220) | 231) | 166) | 189) | 1,170) | 1,076) | 224) | 625) | 2,195) | 113) | 140) | |||||
| Long-term debt currently due | 3,412) | 584) | 2,084) | 2,844) | 2,352) | 3,113) | 1,617) | 344) | 1,283) | 1,389) | 1,554) | 1,545) | 595) | 193) | 26) | 24) | |||||
| Long-term debt, excluding currently due | 34,288) | 38,260) | 38,259) | 38,244) | 38,726) | 38,823) | 40,303) | 42,334) | 42,355) | 32,701) | 32,723) | 32,717) | 30,694) | 31,059) | 31,274) | 31,308) | |||||
| Total debt | 37,904) | 39,059) | 41,978) | 41,300) | 41,261) | 42,156) | 42,151) | 42,844) | 43,827) | 35,260) | 35,353) | 34,486) | 31,914) | 33,447) | 31,413) | 31,472) | |||||
| Shareowners’ equity | 65,245) | 64,514) | 62,398) | 61,516) | 60,156) | 61,114) | 58,985) | 60,485) | 59,798) | 69,596) | 72,480) | 72,795) | 72,632) | 70,187) | 70,441) | 72,462) | |||||
| Total capital | 103,149) | 103,573) | 104,376) | 102,816) | 101,417) | 103,270) | 101,136) | 103,329) | 103,625) | 104,856) | 107,833) | 107,281) | 104,546) | 103,634) | 101,854) | 103,934) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.37 | 0.38 | 0.40 | 0.40 | 0.41 | 0.41 | 0.42 | 0.41 | 0.42 | 0.34 | 0.33 | 0.32 | 0.31 | 0.32 | 0.31 | 0.30 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.91 | 1.18 | 1.07 | 1.07 | 1.08 | 1.69 | 1.45 | 1.55 | 1.49 | 1.47 | 1.42 | 1.39 | 1.39 | 1.45 | 1.35 | 1.36 | |||||
| Caterpillar Inc. | 0.67 | 0.67 | 0.69 | 0.68 | 0.66 | 0.66 | 0.69 | 0.68 | 0.66 | 0.64 | 0.67 | 0.67 | 0.70 | 0.70 | 0.70 | 0.69 | |||||
| Eaton Corp. plc | 0.34 | 0.36 | 0.37 | 0.35 | 0.33 | 0.33 | 0.34 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | 0.36 | 0.37 | 0.37 | |||||
| GE Aerospace | 0.52 | 0.53 | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.41 | 0.43 | 0.42 | 0.41 | 0.41 | 0.47 | 0.49 | 0.48 | 0.46 | |||||
| Honeywell International Inc. | 0.71 | 0.69 | 0.69 | 0.65 | 0.63 | 0.64 | 0.62 | 0.61 | 0.56 | 0.54 | 0.55 | 0.53 | 0.54 | 0.49 | 0.52 | 0.51 | |||||
| Lockheed Martin Corp. | 0.76 | 0.78 | 0.80 | 0.75 | 0.76 | 0.73 | 0.76 | 0.74 | 0.72 | 0.65 | 0.66 | 0.62 | 0.63 | 0.49 | 0.50 | 0.54 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 37,904 ÷ 103,149 = 0.37
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a generally increasing trend, followed by a stabilization and slight decrease. Initially, the ratio fluctuated between 0.30 and 0.34 from March 31, 2022, through September 30, 2023. A significant increase occurred in December 31, 2023, reaching 0.42, before stabilizing around 0.41 to 0.42 in the subsequent quarters. A modest decline is then observed, with the ratio decreasing to 0.37 by December 31, 2025.
- Overall Trend
- The ratio generally increased from 0.30 in March 2022 to a peak of 0.42 in December 2023. This indicates a growing reliance on debt financing relative to capital. However, the ratio has since shown a slight downward trend, suggesting a potential shift towards a more balanced capital structure.
- Short-Term Fluctuations (2022-2023)
- From March 2022 to September 2023, the debt to capital ratio experienced minor fluctuations, remaining within a relatively narrow range. This suggests a period of stable, though gradually increasing, leverage. The increase from 0.30 to 0.34 over this period indicates a moderate increase in debt relative to capital.
- Significant Increase (December 2023)
- The most substantial change occurred in December 2023, with the ratio jumping to 0.42. This represents a considerable increase in the proportion of debt financing compared to total capital. The cause of this increase would require further investigation, but it suggests a significant new debt issuance or a decrease in capital during that period.
- Stabilization and Decline (2024-2025)
- Following the peak in December 2023, the ratio stabilized around 0.41 to 0.42 for several quarters. The subsequent decrease to 0.37 by December 2025 indicates a potential reduction in debt or an increase in capital, leading to a more conservative capital structure. This recent decline could be due to debt repayment, equity issuance, or retained earnings growth.
In summary, the debt to capital ratio indicates an initial period of moderate leverage, a significant increase in late 2023, and a subsequent stabilization followed by a slight decrease. The observed trends suggest a dynamic capital structure that warrants continued monitoring.
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Debt to Capital (including Operating Lease Liability)
RTX Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term borrowings | 204) | 215) | 1,635) | 212) | 183) | 220) | 231) | 166) | 189) | 1,170) | 1,076) | 224) | 625) | 2,195) | 113) | 140) | |||||
| Long-term debt currently due | 3,412) | 584) | 2,084) | 2,844) | 2,352) | 3,113) | 1,617) | 344) | 1,283) | 1,389) | 1,554) | 1,545) | 595) | 193) | 26) | 24) | |||||
| Long-term debt, excluding currently due | 34,288) | 38,260) | 38,259) | 38,244) | 38,726) | 38,823) | 40,303) | 42,334) | 42,355) | 32,701) | 32,723) | 32,717) | 30,694) | 31,059) | 31,274) | 31,308) | |||||
| Total debt | 37,904) | 39,059) | 41,978) | 41,300) | 41,261) | 42,156) | 42,151) | 42,844) | 43,827) | 35,260) | 35,353) | 34,486) | 31,914) | 33,447) | 31,413) | 31,472) | |||||
| Operating lease liabilities, non-current | 1,602) | 1,650) | 1,617) | 1,646) | 1,632) | 1,592) | 1,415) | 1,410) | 1,412) | 1,523) | 1,570) | 1,624) | 1,586) | 1,539) | 1,593) | 1,627) | |||||
| Total debt (including operating lease liability) | 39,506) | 40,709) | 43,595) | 42,946) | 42,893) | 43,748) | 43,566) | 44,254) | 45,239) | 36,783) | 36,923) | 36,110) | 33,500) | 34,986) | 33,006) | 33,099) | |||||
| Shareowners’ equity | 65,245) | 64,514) | 62,398) | 61,516) | 60,156) | 61,114) | 58,985) | 60,485) | 59,798) | 69,596) | 72,480) | 72,795) | 72,632) | 70,187) | 70,441) | 72,462) | |||||
| Total capital (including operating lease liability) | 104,751) | 105,223) | 105,993) | 104,462) | 103,049) | 104,862) | 102,551) | 104,739) | 105,037) | 106,379) | 109,403) | 108,905) | 106,132) | 105,173) | 103,447) | 105,561) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.38 | 0.39 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.43 | 0.35 | 0.34 | 0.33 | 0.32 | 0.33 | 0.32 | 0.31 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Eaton Corp. plc | 0.35 | 0.37 | 0.38 | 0.37 | 0.35 | 0.35 | 0.35 | 0.34 | 0.34 | 0.34 | 0.35 | 0.35 | 0.35 | 0.37 | 0.38 | 0.37 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 39,506 ÷ 104,751 = 0.38
2 Click competitor name to see calculations.
The Debt to Capital ratio, including operating lease liabilities, for the analyzed period demonstrates a generally increasing trend, with some stabilization in the most recent quarters. Initially, the ratio fluctuated within a narrow range before experiencing a more significant increase towards the end of the observed timeframe.
- Overall Trend
- The ratio began at 0.31 in March 2022 and generally increased to 0.38 by December 2025. The most substantial increase occurred between September 2023 (0.35) and December 2023 (0.43). Following this peak, the ratio experienced a slight decline, stabilizing around 0.41-0.42 for several quarters before decreasing to 0.38 in December 2025.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- From March 2022 to December 2022, the ratio exhibited relatively minor fluctuations, ranging from 0.31 to 0.33. This suggests a period of stable capital structure with consistent levels of debt relative to capital.
- Growth Phase (Mar 31, 2023 – Sep 30, 2023)
- The period from March 2023 to September 2023 saw a steady increase in the ratio, moving from 0.33 to 0.35. This indicates a growing reliance on debt financing relative to equity and other capital sources.
- Significant Increase & Subsequent Stabilization (Dec 31, 2023 – Sep 30, 2024)
- A notable increase was observed from December 2023 (0.43) to September 2024 (0.42). While the ratio remained elevated, it demonstrated a degree of stabilization during this period, suggesting that the increase in debt may have been a deliberate strategic move rather than an uncontrolled escalation.
- Recent Trend (Dec 31, 2024 – Dec 31, 2025)
- The most recent quarters show a slight downward trend, with the ratio decreasing from 0.42 in December 2024 to 0.38 in December 2025. This could indicate a focus on deleveraging or a shift in capital structure strategy.
In summary, the Debt to Capital ratio experienced a general upward trend over the analyzed period, punctuated by a significant increase in late 2023 and early 2024, followed by a recent period of stabilization and a slight decline. These movements suggest evolving financing strategies and a changing risk profile.
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Debt to Assets
RTX Corp., debt to assets calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term borrowings | 204) | 215) | 1,635) | 212) | 183) | 220) | 231) | 166) | 189) | 1,170) | 1,076) | 224) | 625) | 2,195) | 113) | 140) | |||||
| Long-term debt currently due | 3,412) | 584) | 2,084) | 2,844) | 2,352) | 3,113) | 1,617) | 344) | 1,283) | 1,389) | 1,554) | 1,545) | 595) | 193) | 26) | 24) | |||||
| Long-term debt, excluding currently due | 34,288) | 38,260) | 38,259) | 38,244) | 38,726) | 38,823) | 40,303) | 42,334) | 42,355) | 32,701) | 32,723) | 32,717) | 30,694) | 31,059) | 31,274) | 31,308) | |||||
| Total debt | 37,904) | 39,059) | 41,978) | 41,300) | 41,261) | 42,156) | 42,151) | 42,844) | 43,827) | 35,260) | 35,353) | 34,486) | 31,914) | 33,447) | 31,413) | 31,472) | |||||
| Total assets | 171,079) | 168,672) | 167,139) | 164,864) | 162,861) | 164,822) | 161,169) | 160,187) | 161,869) | 162,443) | 162,161) | 161,636) | 158,864) | 158,225) | 159,017) | 159,366) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.22 | 0.23 | 0.25 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.22 | 0.22 | 0.21 | 0.20 | 0.21 | 0.20 | 0.20 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 0.32 | 0.36 | 0.34 | 0.34 | 0.34 | 0.42 | 0.41 | 0.36 | 0.38 | 0.39 | 0.39 | 0.41 | 0.42 | 0.42 | 0.42 | 0.43 | |||||
| Caterpillar Inc. | 0.44 | 0.44 | 0.45 | 0.45 | 0.44 | 0.44 | 0.45 | 0.45 | 0.43 | 0.43 | 0.44 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | |||||
| Eaton Corp. plc | 0.24 | 0.26 | 0.27 | 0.26 | 0.24 | 0.24 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.26 | 0.28 | 0.27 | |||||
| GE Aerospace | 0.16 | 0.16 | 0.15 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.13 | 0.13 | 0.13 | 0.14 | 0.17 | 0.17 | 0.18 | 0.18 | |||||
| Honeywell International Inc. | 0.47 | 0.46 | 0.47 | 0.44 | 0.41 | 0.42 | 0.40 | 0.38 | 0.33 | 0.33 | 0.34 | 0.32 | 0.31 | 0.28 | 0.31 | 0.31 | |||||
| Lockheed Martin Corp. | 0.36 | 0.37 | 0.37 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.33 | 0.31 | 0.31 | 0.29 | 0.29 | 0.22 | 0.22 | 0.23 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 37,904 ÷ 171,079 = 0.22
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally increasing trend, with some stabilization in the latter quarters. Initially, the ratio remained consistent before exhibiting a notable increase towards the end of 2022 and into 2023. Subsequently, the ratio has shown signs of moderation, though it remains elevated compared to earlier periods.
- Initial Stability (Mar 31, 2022 – Sep 30, 2022)
- The debt-to-assets ratio began the period at 0.20 in March 2022 and fluctuated modestly, reaching 0.21 by September 2022. This indicates a relatively stable capital structure during this timeframe, with debt representing approximately 20-21% of total assets.
- Increasing Leverage (Dec 31, 2022 – Sep 30, 2023)
- A clear upward trend emerges from December 2022, with the ratio increasing from 0.20 to 0.27 by December 2023. This suggests an increase in the company’s financial leverage, potentially due to increased debt financing or a decrease in asset values. The ratio remained at 0.27 in March 2023 and increased to 0.22 in September 2023.
- Recent Moderation (Dec 31, 2023 – Dec 31, 2025)
- Following the peak of 0.27, the debt-to-assets ratio has exhibited a downward trend, albeit a gradual one. It decreased to 0.26 by June 2024 and further to 0.22 by December 2025. This indicates a potential effort to reduce leverage, possibly through debt repayment or asset growth. The ratio stabilized around 0.25-0.26 for several quarters before the final decrease.
- Total Debt and Total Assets
- Total debt increased from US$31,472 million in March 2022 to US$43,827 million in December 2023, before decreasing to US$37,904 million by December 2025. Total assets generally increased over the period, from US$159,366 million in March 2022 to US$171,079 million in December 2025. The combined effect of these changes contributed to the observed fluctuations in the debt-to-assets ratio.
Overall, the analysis suggests a period of increasing financial risk followed by a recent attempt to moderate leverage. Continued monitoring of this ratio is recommended to assess the long-term sustainability of the company’s capital structure.
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Debt to Assets (including Operating Lease Liability)
RTX Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Short-term borrowings | 204) | 215) | 1,635) | 212) | 183) | 220) | 231) | 166) | 189) | 1,170) | 1,076) | 224) | 625) | 2,195) | 113) | 140) | |||||
| Long-term debt currently due | 3,412) | 584) | 2,084) | 2,844) | 2,352) | 3,113) | 1,617) | 344) | 1,283) | 1,389) | 1,554) | 1,545) | 595) | 193) | 26) | 24) | |||||
| Long-term debt, excluding currently due | 34,288) | 38,260) | 38,259) | 38,244) | 38,726) | 38,823) | 40,303) | 42,334) | 42,355) | 32,701) | 32,723) | 32,717) | 30,694) | 31,059) | 31,274) | 31,308) | |||||
| Total debt | 37,904) | 39,059) | 41,978) | 41,300) | 41,261) | 42,156) | 42,151) | 42,844) | 43,827) | 35,260) | 35,353) | 34,486) | 31,914) | 33,447) | 31,413) | 31,472) | |||||
| Operating lease liabilities, non-current | 1,602) | 1,650) | 1,617) | 1,646) | 1,632) | 1,592) | 1,415) | 1,410) | 1,412) | 1,523) | 1,570) | 1,624) | 1,586) | 1,539) | 1,593) | 1,627) | |||||
| Total debt (including operating lease liability) | 39,506) | 40,709) | 43,595) | 42,946) | 42,893) | 43,748) | 43,566) | 44,254) | 45,239) | 36,783) | 36,923) | 36,110) | 33,500) | 34,986) | 33,006) | 33,099) | |||||
| Total assets | 171,079) | 168,672) | 167,139) | 164,864) | 162,861) | 164,822) | 161,169) | 160,187) | 161,869) | 162,443) | 162,161) | 161,636) | 158,864) | 158,225) | 159,017) | 159,366) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.23 | 0.24 | 0.26 | 0.26 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.23 | 0.23 | 0.22 | 0.21 | 0.22 | 0.21 | 0.21 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Eaton Corp. plc | 0.26 | 0.28 | 0.29 | 0.27 | 0.26 | 0.26 | 0.27 | 0.25 | 0.26 | 0.26 | 0.27 | 0.26 | 0.26 | 0.28 | 0.29 | 0.28 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 39,506 ÷ 171,079 = 0.23
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liabilities, for the analyzed period demonstrates a generally increasing trend, with some stabilization towards the end of the observed timeframe. Initially, the ratio remained relatively stable before experiencing a notable increase in late 2022 and continuing into 2023. Subsequently, the ratio shows signs of moderation, decreasing slightly in the latter part of 2023 and throughout 2024 and 2025.
- Initial Stability (Mar 31, 2022 – Jun 30, 2022)
- The ratio began the period at 0.21 and remained consistent through the first two quarters, indicating a stable relationship between total debt and total assets. This suggests a consistent capital structure during this time.
- Increasing Leverage (Sep 30, 2022 – Dec 31, 2023)
- From September 2022, the ratio began to increase, reaching 0.28 by December 2023. This indicates a growing proportion of debt financing relative to the asset base. The increase in debt, as reflected in the Total debt figure, appears to have outpaced the growth in total assets during this period.
- Moderation and Potential Deleveraging (Mar 3, 2024 – Dec 31, 2025)
- Following the peak in December 2023, the ratio exhibited a downward trend, albeit a gradual one. It decreased to 0.23 by December 2025. This suggests a potential shift towards deleveraging, where the company is either reducing its debt levels or increasing its asset base at a faster rate than its debt. The decrease, while present, is relatively small, indicating a cautious approach to altering the capital structure.
- Magnitude of Change
- The largest single-quarter increase occurred between September 2023 and December 2023, with the ratio increasing from 0.23 to 0.28. The most significant decrease occurred between September 2025 and December 2025, with the ratio decreasing from 0.24 to 0.23. These periods represent the most substantial shifts in the company’s debt-to-asset profile.
Overall, the observed trend suggests a period of increased leverage followed by a period of stabilization and slight deleveraging. Continued monitoring of this ratio is recommended to assess the long-term sustainability of the company’s capital structure.
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Financial Leverage
RTX Corp., financial leverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | 171,079) | 168,672) | 167,139) | 164,864) | 162,861) | 164,822) | 161,169) | 160,187) | 161,869) | 162,443) | 162,161) | 161,636) | 158,864) | 158,225) | 159,017) | 159,366) | |||||
| Shareowners’ equity | 65,245) | 64,514) | 62,398) | 61,516) | 60,156) | 61,114) | 58,985) | 60,485) | 59,798) | 69,596) | 72,480) | 72,795) | 72,632) | 70,187) | 70,441) | 72,462) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 2.62 | 2.61 | 2.68 | 2.68 | 2.71 | 2.70 | 2.73 | 2.65 | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| Boeing Co. | 30.85 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||
| Caterpillar Inc. | 4.62 | 4.54 | 4.84 | 4.70 | 4.50 | 4.45 | 4.86 | 4.75 | 4.49 | 4.24 | 4.68 | 4.61 | 5.16 | 5.19 | 5.16 | 4.82 | |||||
| Eaton Corp. plc | 2.12 | 2.16 | 2.18 | 2.12 | 2.08 | 2.05 | 2.05 | 2.00 | 2.02 | 2.03 | 2.05 | 2.04 | 2.06 | 2.14 | 2.15 | 2.12 | |||||
| GE Aerospace | 6.97 | 6.82 | 6.55 | 6.45 | 6.37 | 6.71 | 6.62 | 5.49 | 5.96 | 5.47 | 5.23 | 5.20 | 5.16 | 5.75 | 5.35 | 4.92 | |||||
| Honeywell International Inc. | 5.30 | 4.82 | 4.87 | 4.31 | 4.04 | 4.22 | 4.09 | 3.99 | 3.88 | 3.56 | 3.60 | 3.54 | 3.73 | 3.40 | 3.55 | 3.45 | |||||
| Lockheed Martin Corp. | 8.90 | 9.75 | 11.04 | 8.48 | 8.78 | 7.71 | 8.92 | 8.27 | 7.67 | 6.11 | 6.17 | 5.66 | 5.71 | 4.35 | 4.53 | 5.15 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Shareowners’ equity
= 171,079 ÷ 65,245 = 2.62
2 Click competitor name to see calculations.
Financial leverage, as indicated by the ratio of total assets to shareowners’ equity, exhibits a generally increasing trend over the observed period. Initial values fluctuate around 2.20 to 2.26 throughout the first three quarters of 2022, before decreasing slightly to 2.19 by the end of the year. A subsequent increase begins in 2023, with the ratio rising to 2.24 by mid-year and continuing to 2.33 by the end of the third quarter. A more substantial increase is then observed in the fourth quarter of 2023, reaching 2.71.
- Overall Trend
- The ratio remains elevated in 2024, fluctuating between 2.65 and 2.73. A slight decrease is noted in the first quarter of 2025 to 2.68, followed by stability through the second quarter. The final reported value for the third quarter of 2025 is 2.61, and a slight increase to 2.62 is observed in the fourth quarter. This suggests a potential stabilization of leverage after the significant increase experienced in late 2023.
- Significant Changes
- The most pronounced change occurs between September 30, 2023 (2.33) and December 31, 2023 (2.71), representing a substantial increase in financial leverage. This suggests a significant shift in the company’s capital structure during that period, potentially involving increased debt financing or a decrease in equity. The subsequent period shows a leveling off of this increased leverage, with only minor fluctuations.
- Recent Performance
- The most recent quarterly values indicate a slight downward trend in financial leverage, moving from 2.70 in September 2024 to 2.62 in December 2025. While this decrease is modest, it may signal a deliberate effort to moderate the company’s reliance on financial leverage.
In summary, the company’s financial leverage has generally increased over the analyzed timeframe, with a particularly notable rise in late 2023. Recent quarters suggest a potential stabilization, and even a slight reduction, in this leverage.
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