Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Balance Sheet: Assets
- Common-Size Income Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Long-term Activity Ratios (Summary)
RTX Corp., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 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), 10-K (reporting date: 2020-12-31).
The financial data reveals consistent improvement in the efficiency ratios over the observed period.
- Net Fixed Asset Turnover
- This ratio shows a positive upward trend, increasing from 3.78 in 2020 to 5.02 in 2024. It indicates an increasing ability to generate sales from the net fixed assets, reflecting improved asset utilization or increased sales performance relative to fixed assets.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- Similarly, this adjusted ratio also demonstrates steady growth from 3.36 in 2020 to 4.5 in 2024. The growth suggests that incorporating leased assets into the asset base still points to enhanced efficiency in asset use over the years.
- Total Asset Turnover
- The total asset turnover exhibits gradual improvement from 0.35 in 2020 to 0.5 in 2024. This increase indicates better overall utilization of all assets to generate revenues, suggesting improved operational effectiveness or revenue growth relative to total asset investments.
- Equity Turnover
- Equity turnover shows the most marked increase among the ratios, rising from 0.78 in 2020 to 1.34 in 2024. This trend reflects stronger sales generation per unit of equity, signaling enhanced efficiency in deploying shareholders’ equity to drive revenue growth.
Overall, the upward trends across these turnover ratios collectively point towards improving operational efficiency and stronger asset and equity utilization in generating sales over the five-year span. These patterns could be indicative of effective asset management, increased production capacity, sales growth, or a combination thereof.
Net Fixed Asset Turnover
RTX Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Fixed assets, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Fixed assets, net
= ÷ =
2 Click competitor name to see calculations.
The analyzed data reveals a consistent upward trend in net sales from 2020 to 2024. Net sales increased from US$56,587 million in 2020 to US$80,738 million in 2024, indicating robust revenue growth over the five-year period. This reflects a strong expansion in the company's business activities or market demand.
Regarding fixed assets, net values demonstrate a gradual but modest increase. The net fixed assets rose from US$14,962 million in 2020 to US$16,089 million in 2024. This moderate growth suggests careful capital investments or asset management, maintaining a steady asset base without significant fluctuations.
The net fixed asset turnover ratio, which measures the efficiency in utilizing fixed assets to generate sales, shows an overall improvement from 3.78 in 2020 to 5.02 in 2024. This increase underscores growing operational efficiency, as the company has been able to generate more sales per unit of fixed asset value over time. The ratio peaked in 2022 at 4.42, experienced a slight dip in 2023 to 4.38, but rose notably in 2024.
- Net Sales Trend
- Steady and significant increase, highlighting strong revenue growth.
- Fixed Assets
- Gradual increase, indicating cautious asset investment policy.
- Net Fixed Asset Turnover
- Overall increase, signaling improved asset utilization efficiency despite minor fluctuations.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
RTX Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Fixed assets, net | ||||||
| Operating lease right-of-use assets | ||||||
| Fixed assets, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Fixed assets, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
Over the observed period, net sales exhibited a consistent upward trend, increasing from 56,587 million US dollars in 2020 to 80,738 million US dollars in 2024. This represents a significant growth, highlighting an expanding revenue base. The annual increments indicate steady sales performance with a notable acceleration in the final year.
Fixed assets, net—including operating lease and right-of-use assets—showed a gradual increase from 16,842 million US dollars in 2020 to 17,953 million US dollars in 2024. The relatively moderate growth in fixed assets contrasts with the more pronounced increase in net sales, suggesting a more efficient use of assets or possible enhancements in asset productivity during the period.
The net fixed asset turnover ratio, which measures the efficiency with which fixed assets generate sales, rose steadily from 3.36 in 2020 to 4.5 in 2024. This upward movement indicates an improvement in asset utilization over time. The increase in this ratio suggests that the company has been able to generate higher sales volumes per unit of fixed assets, reflecting better operational effectiveness or optimized asset management.
- Net Sales
- Demonstrated continuous growth over the five-year span, with the most significant increase occurring between 2023 and 2024.
- Fixed Assets, Net
- Incrementally increased each year, but at a slower pace compared to sales, indicating controlled capital investment or efficient asset management.
- Net Fixed Asset Turnover Ratio
- Showed consistent improvement, culminating in a marked rise to 4.5 in 2024, reflecting enhanced productivity of fixed assets.
Overall, the data reveals positive momentum in sales growth accompanied by improved efficiency in fixed asset usage, suggesting favorable operational conditions and effective asset management strategies over the period analyzed.
Total Asset Turnover
RTX Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| Total Asset Turnover, Sector | ||||||
| Capital Goods | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrate a consistent upward trajectory over the five-year period. Starting at 56,587 million US dollars in 2020, sales increase annually, reaching 64,388 million in 2021 and 67,074 million in 2022. Growth continues with 68,920 million in 2023 and a more pronounced rise to 80,738 million by the end of 2024. The pattern indicates sustained revenue growth with an acceleration visible in the final year.
- Total Assets
- Total assets remain relatively stable throughout the period. Beginning at 162,153 million US dollars in 2020, there is a slight decline to 161,404 million in 2021 and a further decrease to 158,864 million in 2022. The asset base recovers modestly thereafter, reaching 161,869 million in 2023 and 162,861 million in 2024, essentially returning to initial levels by the end of the timeframe.
- Total Asset Turnover
- The total asset turnover ratio shows a steady improvement each year. From 0.35 in 2020, it rises to 0.40 in 2021, 0.42 in 2022, and 0.43 in 2023, culminating in a significant increase to 0.50 in 2024. This trend indicates increasing efficiency in generating sales from the asset base, with particularly notable gains in the final year.
- Overall Analysis
- The data reveal a pattern of steady revenue expansion alongside a stable asset base. The improvement in total asset turnover ratio suggests enhanced operational efficiency in utilizing assets to drive sales. The acceleration in net sales growth combined with stable asset levels indicates effective scaling or better asset utilization practices. The company appears to maintain control over asset size while increasing its market activities, leading to stronger sales performance and improved asset productivity.
Equity Turnover
RTX Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Shareowners’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| Equity Turnover, Sector | ||||||
| Capital Goods | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Equity turnover = Net sales ÷ Shareowners’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data exhibits several notable trends over the five-year period ending December 31, 2024.
- Net Sales
- Net sales demonstrate a consistent upward trajectory, increasing from US$56,587 million in 2020 to US$80,738 million in 2024. This represents a significant growth, with a particularly noticeable acceleration in the final year, suggesting enhanced revenue generation capabilities or successful market expansion efforts.
- Shareowners’ Equity
- Shareowners’ equity remains relatively stable from 2020 through 2022, with values hovering around US$72,000 million. However, there is a pronounced decline in 2023 to approximately US$59,798 million, followed by a marginal increase to US$60,156 million in 2024. This drop may indicate substantial payouts, asset write-downs, or other equity-impacting events during 2023.
- Equity Turnover
- The equity turnover ratio, which measures net sales relative to shareowners’ equity, shows a steady increase throughout the period. Starting at 0.78 in 2020, the ratio rises each year, reaching 1.34 in 2024. The increase in this ratio suggests improved efficiency in utilizing equity to generate sales, particularly notable in the 2023 to 2024 interval, which could be linked to the previously noted downturn in equity combined with continued sales growth.
Overall, the data indicate expanding sales performance combined with a temporary reduction in equity, resulting in enhanced turnover efficiency. This suggests shifts in capital structure or operational strategy that warrant further analysis to understand underlying causes and sustainability.