Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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Profitability Ratios (Summary)
RTX Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 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).
Profitability metrics exhibit a distinct V-shaped trajectory across the analyzed period, characterized by a phase of steady growth, a significant contraction between the third quarter of 2023 and the second quarter of 2024, and a subsequent robust recovery leading into early 2026.
- Profit Margin Trends
- Gross profit margins remained stable near 20% through mid-2023 before experiencing a decline that bottomed at 16.38% in June 2024. A recovery followed, with margins returning to 20.21% by March 2026. Operating profit margins showed higher volatility; after peaking at 8.73% in March 2023, they fell sharply to 3.94% by June 2024. However, the recovery phase was more pronounced for operating margins than for gross margins, eventually reaching a period high of 10.87% in March 2026. Net profit margins mirrored this volatility, dropping from a peak of 8.08% in March 2023 to a low of 3.12% in June 2024, before recovering to 8.03% by the end of the series.
- Efficiency and Return Metrics
- Return on Equity (ROE) and Return on Assets (ROA) followed the same cyclical pattern as the margins. ROE climbed from 5.79% in March 2022 to 7.67% in June 2023, dipped to 3.83% in June 2024, and then accelerated to a peak of 10.95% by March 2026. ROA similarly fluctuated, descending from a mid-2023 high of 3.43% to a low of 1.40% in June 2024, before trending upward to reach 4.26% by March 2026.
- Comparative Performance Analysis
- The data indicates that the contraction period starting in September 2023 affected operating and net margins more severely than the gross margin, suggesting that the primary pressures during this interval may have been linked to operating expenses or non-operating costs rather than direct cost of goods sold. The recovery phase from September 2024 onwards is marked by an expansion in operational efficiency, as operating margins and ROE exceeded their pre-contraction peaks, indicating a strengthened profitability profile by early 2026.
Return on Sales
Return on Investment
Gross Profit Margin
RTX Corp., gross profit margin calculation (quarterly data)
| Mar 31, 2026 | 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) | |||||||||||||||||||||||
| Gross margin | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
Gross profit margin = 100
× (Gross marginQ1 2026
+ Gross marginQ4 2025
+ Gross marginQ3 2025
+ Gross marginQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
An analysis of the financial performance from March 2022 through March 2026 reveals a general expansion in scale, characterized by steady growth in net sales and absolute gross margin, despite a period of significant margin compression between late 2023 and mid-2024.
- Revenue and Absolute Margin Growth
- Net sales exhibited a long-term upward trajectory, increasing from 15,716 million in March 2022 to a peak of 24,238 million in December 2025. Absolute gross margin mirrored this growth, rising from 3,156 million to 4,717 million over the same period, indicating that the increase in volume contributed to higher total gross profits.
- Gross Profit Margin Volatility
- The gross profit margin percentage remained relatively stable around 20% during 2022 and early 2023. However, a sharp decline occurred in September 2023, where the margin fell to 17.36%. This downward trend continued to a trough of 16.38% in June 2024, suggesting a period of increased cost of goods sold relative to revenue or specific operational headwinds.
- Recovery and Stabilization Phase
- A consistent recovery in profitability is observed starting in September 2024, with the margin climbing back to 19.21%. This upward momentum persisted through the subsequent quarters, with the margin returning to 20.21% by March 2026. This indicates a successful restoration of the cost structure and pricing efficiency to pre-2023 levels.
Operating Profit Margin
RTX Corp., operating profit margin calculation (quarterly data)
| Mar 31, 2026 | 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) | |||||||||||||||||||||||
| Operating profit (loss) | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
Operating profit margin = 100
× (Operating profit (loss)Q1 2026
+ Operating profit (loss)Q4 2025
+ Operating profit (loss)Q3 2025
+ Operating profit (loss)Q2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibits a long-term growth trajectory characterized by a period of significant volatility between the third quarter of 2023 and the second quarter of 2024. Starting at 7.75% in March 2022, the margin initially climbed steadily before experiencing a sharp contraction. Following this period of instability, a robust recovery phase began in the second half of 2024, leading to a sustained expansion that culminated in a peak of 10.87% by March 2026.
- Initial Growth and Stability (2022 – Mid 2023)
- A gradual increase in operating efficiency is observed from March 2022 to March 2023, with margins rising from 7.75% to a peak of 8.73%. This period reflects a consistent improvement in the ability to convert net sales into operating profit.
- Period of Volatility and Contraction (Late 2023 – Mid 2024)
- A substantial downturn occurred starting in September 2023, where margins dropped to 4.79%. This volatility is further highlighted by a reported operating loss of 1,396 million USD during that specific quarter. The downward pressure persisted into June 2024, reaching a low of 3.94%, indicating a period of severe operational headwinds or significant non-recurring expenses.
- Recovery and Accelerated Expansion (Late 2024 – 2026)
- A strong recovery is evident starting in September 2024, with the margin returning to 7.94%. From March 2025 onward, the company entered a phase of accelerated margin expansion, breaking the 10% threshold in June 2025. The trend remained consistently positive through March 2026, reaching 10.87%, which represents the highest level of operating efficiency within the analyzed period.
Net Profit Margin
RTX Corp., net profit margin calculation (quarterly data)
| Mar 31, 2026 | 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) | |||||||||||||||||||||||
| Net income (loss) attributable to common shareowners | |||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
Net profit margin = 100
× (Net income (loss) attributable to common shareownersQ1 2026
+ Net income (loss) attributable to common shareownersQ4 2025
+ Net income (loss) attributable to common shareownersQ3 2025
+ Net income (loss) attributable to common shareownersQ2 2025)
÷ (Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025
+ Net salesQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibits a cyclical trajectory characterized by an initial period of expansion, a significant mid-term contraction, and a subsequent recovery to historical peaks.
- Initial Growth Phase (March 2022 – March 2023)
- A steady upward trend is observed during this period, with the net profit margin rising from 6.47% to a peak of 8.08%. This expansion occurred alongside a gradual increase in net sales, indicating a period of improving operational efficiency and profitability.
- Contraction and Volatility (September 2023 – June 2024)
- A sharp decline in profitability occurred starting in the third quarter of 2023. The net profit margin dropped to 4.76% in September 2023, coinciding with a net loss of 984 million USD. This downward pressure persisted through June 2024, where the margin reached a period low of 3.12%. The fact that this decline occurred while net sales remained relatively high suggests the impact of significant non-recurring charges or a sharp increase in operating costs.
- Recovery and Stabilization (September 2024 – March 2026)
- A consistent recovery trend emerged in the latter half of 2024. The net profit margin climbed back to 5.97% by September 2024 and maintained a positive trajectory through 2025. By March 31, 2026, the margin returned to 8.03%, effectively recovering the losses seen in the previous two years. This rebound was supported by a sustained increase in net sales, which peaked at 24.2 billion USD in December 2025, suggesting a return to normalized operational performance and improved scale.
Return on Equity (ROE)
RTX Corp., ROE calculation (quarterly data)
| Mar 31, 2026 | 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) | |||||||||||||||||||||||
| Net income (loss) attributable to common shareowners | |||||||||||||||||||||||
| Shareowners’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
ROE = 100
× (Net income (loss) attributable to common shareownersQ1 2026
+ Net income (loss) attributable to common shareownersQ4 2025
+ Net income (loss) attributable to common shareownersQ3 2025
+ Net income (loss) attributable to common shareownersQ2 2025)
÷ Shareowners’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of return on equity (ROE) reveals a period of initial stability, a phase of significant volatility between late 2023 and mid-2024, followed by a sustained upward trajectory through early 2026. ROE began at 5.79% in March 2022 and concluded at a period high of 10.95% by March 31, 2026.
- Net Income Volatility
- Profitability experienced two notable disruptions that negatively impacted ROE. A significant contraction occurred on September 30, 2023, where net income attributable to common shareowners fell to negative 984 million dollars, causing ROE to drop to 4.59%. A second sharp decline was observed on June 30, 2024, with net income falling to 111 million dollars, resulting in the period's lowest ROE of 3.83%.
- Equity Base Adjustments
- Shareowners' equity remained relatively stable between 70 billion and 73 billion dollars through the first half of 2023. However, a downward adjustment occurred between September 2023 and June 2024, with equity reaching a low of approximately 59 billion dollars. This reduction in the equity base served as a counter-balance to declining net income, though it was insufficient to prevent the overall dip in ROE during the volatility phase.
- Recovery and Expansion Phase
- Starting in the second half of 2024, a consistent improvement in financial performance is evident. Net income rose steadily from 1.47 billion dollars in September 2024 to 2.06 billion dollars by March 2026. Simultaneously, shareowners' equity began a gradual recovery, climbing to 66.28 billion dollars. The growth in net income outpaced the growth in equity during this period, driving ROE from 7.72% in September 2024 to a peak of 10.95% by the end of the analyzed timeframe.
The overall trend indicates an improvement in the efficiency of generating profits from shareholders' capital. The transition from a sub-8% ROE environment in 2022-2023 to a double-digit return by 2025 suggests a strengthened capacity for profitability and a successful recovery from the operational headwinds encountered in 2023 and 2024.
Return on Assets (ROA)
RTX Corp., ROA calculation (quarterly data)
| Mar 31, 2026 | 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) | |||||||||||||||||||||||
| Net income (loss) attributable to common shareowners | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 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 Q1 2026 Calculation
ROA = 100
× (Net income (loss) attributable to common shareownersQ1 2026
+ Net income (loss) attributable to common shareownersQ4 2025
+ Net income (loss) attributable to common shareownersQ3 2025
+ Net income (loss) attributable to common shareownersQ2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a general upward trajectory over the analyzed period, characterized by a phase of significant volatility between 2023 and 2024 followed by a period of sustained growth. While total assets increased steadily from 159,366 million USD in March 2022 to 170,431 million USD by March 2026, the ability to generate profit from these assets experienced substantial fluctuations.
- Initial Growth and 2023 Volatility
- A steady increase in ROA is observed from March 2022 (2.63%) through June 2023, where it peaked at 3.43%. This positive trend was abruptly interrupted in September 2023, when ROA dropped to 1.96%. This decline corresponds with a reported net loss of 984 million USD, marking a sharp divergence between asset growth and profitability during that quarter.
- 2024 Stabilization and Recovery
- Profitability metrics remained unstable through the first half of 2024, reaching a period low ROA of 1.40% in June 2024, coinciding with a significant reduction in net income to 111 million USD. A recovery phase followed in the second half of 2024, with ROA climbing back to 2.93% by December 31, 2024, signaling a return to normalized earnings levels.
- Sustained Profitability Expansion (2025-2026)
- From January 2025 through March 2026, a consistent and accelerating upward trend in ROA is evident. The ratio progressed from 2.79% to a peak of 4.26% by the end of the period. This improvement was driven by substantial increases in net income, which reached 2,059 million USD in March 2026, indicating that earnings growth significantly outpaced the growth of the total asset base during this window.