RTX Corp., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (loss) attributable to common shareowners	4,774)	3,195)	5,197)	3,864)	(3,519)
Noncontrolling interest in subsidiaries’ earnings	239)	185)	111)	248)	224)
Net noncash charges	3,231)	2,988)	1,338)	3,308)	6,818)
Change in operating capital	(1,085)	1,515)	522)	(278)	811)
Net cash flows provided by operating activities	7,159)	7,883)	7,168)	7,142)	4,334)
Capital expenditures	(2,625)	(2,415)	(2,288)	(2,134)	(1,795)
Proceeds from long-term debt	—)	12,914)	1)	4,062)	2,004)
Repayment of long-term debt	(2,500)	(578)	(3)	(4,254)	(16,082)
Proceeds from bridge loan	—)	10,000)	—)	—)	—)
Repayment of bridge loan	—)	(10,000)	—)	—)	—)
Debt extinguishment costs	—)	—)	—)	(649)	—)
Change in commercial paper, net	—)	(524)	518)	(160)	160)
Change in other short-term borrowings, net	(4)	87)	(29)	47)	(2,201)
Free cash flow to equity (FCFE)	2,030)	17,367)	5,367)	4,054)	(13,580)

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 notable dynamics in cash flow activities over the five-year period, reflecting both operational performance and changes in equity financing capacity.

Net cash flows provided by operating activities: This metric demonstrates an overall positive trend from 2020 to 2023, increasing from $4,334 million to $7,883 million, which indicates a strengthening in the company’s ability to generate cash from its core business operations. However, there is a slight decline observed in 2024, where net operating cash flows decrease to $7,159 million, albeit still significantly higher than the 2020 benchmark. This suggests that while operations remain robust, some factors may have moderated cash generation in the most recent year.
Free cash flow to equity (FCFE): The FCFE shows significant volatility across the same period. A large negative figure in 2020 (-$13,580 million) indicates considerable cash outflows or investment activities exceeding operating cash inflows, possibly related to financing or capital expenditures. In the subsequent years, FCFE turns positive and improves markedly, reaching a peak of $17,367 million in 2023. This dramatic improvement suggests enhanced cash availability for equity holders, potentially due to increased operational cash flows and/or more efficient capital management. However, the figure sharply declines to $2,030 million in 2024, signaling a reduction in excess cash for equity distribution—this may point to increased reinvestment, debt repayments, or other cash uses within that year.

Overall, the trends reflect a company that has strengthened its operational cash generation significantly over the reviewed period but exhibits fluctuations in the cash available for equity stakeholders. The peak in 2023 across both metrics indicates a particularly strong year, while the subsequent downturn in 2024 highlights some emerging challenges or strategic shifts affecting free cash flow despite ongoing solid operational cash generation.

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RTX Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,335,953,770
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	2,030)
FCFE per share	1.52
Current share price (P)	145.92
Valuation Ratio
P/FCFE	96.03
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	17.83
Eaton Corp. plc	38.27
GE Aerospace	64.47
Honeywell International Inc.	9.74
Lockheed Martin Corp.	13.59
P/FCFE, Sector
Capital Goods	38.93
P/FCFE, Industry
Industrials	34.14

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

RTX Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
No. shares of common stock outstanding¹	1,332,122,758	1,326,826,896	1,464,954,584	1,492,330,987	1,519,478,134
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	2,030)	17,367)	5,367)	4,054)	(13,580)
FCFE per share³	1.52	13.09	3.66	2.72	-8.94
Share price^1, 4	129.92	92.24	97.87	95.27	72.49
Valuation Ratio
P/FCFE⁵	85.26	7.05	26.71	35.07	—
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	—	—	120.43	—	6.78
Caterpillar Inc.	16.33	14.39	24.03	16.36	25.22
Eaton Corp. plc	31.06	33.65	28.68	24.43	25.59
GE Aerospace	53.26	225.15	44.45	—	—
Honeywell International Inc.	8.35	26.10	27.59	46.23	12.59
Lockheed Martin Corp.	13.31	13.13	11.63	14.65	15.57
P/FCFE, Sector
Capital Goods	33.57	20.26	25.94	—	74.91
P/FCFE, Industry
Industrials	30.92	23.85	25.07	—	40.69

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 Data adjusted for splits and stock dividends.

² See details »

³ 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,030,000,000 ÷ 1,332,122,758 = 1.52

⁴ Closing price as at the filing date of RTX Corp. Annual Report.

⁵ 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 129.92 ÷ 1.52 = 85.26

⁶ Click competitor name to see calculations.

The financial data reveals several notable trends and fluctuations over the five-year period under review.

Share Price: The share price demonstrated an overall upward trajectory. Starting at $72.49 at the end of 2020, it increased to $95.27 by the end of 2021 and edged slightly higher to $97.87 by the close of 2022. A marginal decline occurred in 2023, bringing the price down to $92.24. However, a significant surge was observed in 2024, with the price reaching $129.92. This marked increase in the last year suggests a positive market sentiment or improved performance expectations.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share displayed considerable variability. It began with a negative value of -$8.94 in 2020, indicating potentially adverse cash flows attributable to equity holders at that time. A recovery took place in 2021, with FCFE turning positive to $2.72, and this positive trend strengthened in 2022, reaching $3.66. The peak occurred in 2023 with a substantial increase to $13.09, reflecting improved cash flow generation. However, this was followed by a sharp decline in 2024 to $1.52, which tempers the prior improvement and signals caution.
Price to FCFE Ratio (P/FCFE): The P/FCFE ratio was not available for 2020 but was calculated starting in 2021, showing a decreasing trend through 2023 before sharply rising in 2024. In 2021, the ratio was 35.07, decreasing to 26.71 in 2022, and significantly dropping to 7.05 in 2023, reflecting a more favorable valuation relative to free cash flow. Conversely, the ratio skyrocketed to 85.26 in 2024, indicating that the share price increased disproportionately relative to FCFE per share, which may suggest overvaluation or investor expectations of future growth despite weakened free cash flow performance.

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RTX Corp. (NYSE:RTX)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical