Common-Size Income Statement
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RTX Corp., common-size consolidated income statement
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).
- Sales Composition
- Products sales as a percentage of net sales exhibit a declining trend from 76.55% in 2020 to a low of 71.93% in 2023, followed by a slight recovery to 73.83% in 2024. Conversely, services sales show an increasing trend from 23.45% in 2020, peaking at 28.07% in 2023, then tapering to 26.17% in 2024, indicating a shift in revenue mix toward services over the period.
- Cost of Sales
- The cost of sales for products decreased significantly from -67.4% in 2020 to around -62.5% from 2022 onward, indicating improved cost management or changes in product pricing. Cost of sales for services fluctuated, increasing from -17.53% to a high of -19.45% in 2023 before slightly decreasing to -18.03% in 2024. Overall cost of sales as a percentage of net sales declined from -84.92% in 2020 to around -80.90% in 2024, reflecting improved gross efficiency or better cost controls.
- Profitability Measures
- Gross margin improved from 15.08% in 2020 to a peak of 20.38% in 2022, before declining to 17.54% in 2023 and partially recovering to 19.09% in 2024. Operating profit experienced a substantial turnaround from a loss of -3.34% in 2020 to positive values, stabilizing above 5% from 2021 onwards with a high of 8.10% in 2024, indicating enhanced operational efficiency. Net income attributable to common shareowners mirrored this trend, turning from a loss of -6.22% in 2020 to consistent profitability between 4.64% and 7.75% during subsequent years.
- Expenses and Income Components
- Research and development expenses as a percentage of net sales continuously declined from -4.56% in 2020 to -3.63% in 2024, possibly reflecting tighter R&D spending. Selling, general, and administrative expenses also declined from a high of -9.79% in 2020 to -7.19% in 2024, supporting improved operating margins. One-time goodwill impairment charges were recorded only in 2020, negatively affecting that year's results. Other income (expense), net decreased from positive territory in 2020 to a slight net expense of -0.16% by 2024, signaling diminishing non-operating gains.
- Non-operating Effects
- Non-service pension income generally declined over the period from 1.59% to 1.88%, showing some fluctuation. Debt extinguishment costs appeared only in 2021 at -1.01%. Interest expense declined slightly from -2.53% in 2020 to around -2.4% in later years, while interest income increased marginally, resulting in net interest expense improving from -2.41% to about -2.31%. Non-operating income (expense), net, fluctuated with a positive peak of 0.91% in 2022 but ended negatively at -0.43% in 2024.
- Taxation and Net Results
- Income tax expense fluctuated mildly, remaining in a range of approximately -0.66% to -1.46% of net sales. Income from continuing operations before taxes showed notable improvement from a loss in 2020 (-4.16%) to positive values exceeding 5.5% from 2021 onwards. Net income from continuing operations followed a similar pattern, moving from a loss of -5.17% in 2020 to a gain of 6.21% by 2024. Losses from discontinued operations were minimal and disappeared after 2022.
- Minority Interests and Shareowners
- Noncontrolling interest in subsidiaries’ earnings remained relatively stable, fluctuating slightly around -0.3% of net sales, with a slight tendency to increase in absolute terms. Overall, net income attributable to common shareowners improved markedly from a negative result in 2020 to sustained profitability in subsequent years, indicating an enhanced return to equity holders.