Common-Size Income Statement
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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RTX Corp., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 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).
The common-size income statement reveals several noteworthy trends over the five-year period. A shift in the composition of net sales is apparent, with a gradual decrease in the proportion derived from product sales and a corresponding increase in service sales. While product sales represented 76.52% of net sales in 2021, this figure declined to 72.43% by 2025. Conversely, service sales increased from 23.48% to 27.57% over the same period.
Cost of sales as a percentage of net sales remained relatively stable, fluctuating between 79.62% and 82.46% throughout the period, with a slight decrease observed in 2025 to 79.92%. This stability is mirrored in the gross margin, which experienced some volatility but ultimately increased from 19.40% in 2021 to 20.08% in 2025.
- Profitability
- Operating profit as a percentage of net sales demonstrated a significant increase, rising from 7.70% in 2021 to 10.50% in 2025. This improvement was not linear, with a dip to 5.17% in 2023. Net income attributable to common shareowners followed a similar pattern, increasing from 6.00% to 7.60% over the period, also with a low point in 2023 at 4.64%. The increase in operating and net income suggests improved operational efficiency and/or effective cost management, particularly in the later years of the period.
- Expense Management
- Research and development expenses decreased as a percentage of net sales, moving from 4.24% in 2021 to 3.17% in 2025. Selling, general, and administrative expenses also exhibited a downward trend, declining from 8.11% to 6.88% over the same timeframe. These reductions in key expense categories likely contributed to the observed improvements in profitability.
- Non-Operating Items
- Non-operating income (expense), net, was volatile. It was positive in 2022 and 2023, then negative in 2024 and 2025. Interest expense, net, remained relatively consistent, fluctuating between 1.90% and 2.44% of net sales. Non-service pension income decreased steadily from 3.02% in 2021 to 1.33% in 2025, potentially indicating changes in pension obligations or accounting practices.
The income tax expense as a percentage of net sales varied, with a low of 0.66% in 2023 and a high of 1.88% in 2025. This fluctuation likely reflects changes in tax rates or the geographic distribution of income. The loss from discontinued operations was minimal in 2021 and 2022, and absent in subsequent years.
Overall, the financial performance demonstrated an improving trend in profitability, driven by a combination of shifting sales mix, effective expense management, and potentially favorable changes in non-operating items. The dip in profitability in 2023 warrants further investigation, but the subsequent recovery and continued growth through 2025 suggest a positive trajectory.