RTX Corp. (NYSE:RTX)

The composition of liabilities and equity at RTX Corp. demonstrates several notable trends over the period from March 31, 2021, to December 31, 2025. Overall, total liabilities generally remained a significant portion of the company’s capital structure, fluctuating between approximately 53% and 62% of the total. Shareowners’ equity consistently represented a substantial portion, ranging from roughly 37% to 46% of the total, though it experienced a relative decline towards the end of the observed period.

Short-Term Borrowings

Short-term borrowings were relatively stable at a low percentage of the total capital structure for most of the period, generally below 0.20%. A significant increase was observed in September 2022 (1.39%) and December 2022 (0.39%), followed by a return to lower levels. A further increase occurred in June 2025 (0.98%), indicating potential short-term financing activity.

Accounts Payable

Accounts payable exhibited an increasing trend throughout the period, rising from 5.72% in March 2021 to 9.29% in December 2025. This suggests a potential increase in reliance on trade credit or changes in payment terms with suppliers.

Accrued Liabilities

Accrued employee compensation and other accrued liabilities both showed an upward trend. Accrued employee compensation increased from 1.56% to 1.93% over the period, while other accrued liabilities rose more substantially, from 6.34% to 8.39%. These increases may reflect growth in personnel or increased operational expenses.

Contract Liabilities

Contract liabilities demonstrated a consistent upward trend, increasing from 8.02% in March 2021 to 12.63% in December 2025. This indicates a growing backlog of deferred revenue, potentially signaling future revenue recognition.

Long-Term Debt

Long-term debt, both currently due and excluding current maturities, showed fluctuations. The portion currently due experienced a spike in late 2022 and early 2025, while the longer-term portion increased significantly in late 2021 and again in late 2023, peaking at 26.17% before declining. This suggests periods of increased long-term financing followed by potential repayments or reclassifications.

Current Liabilities

Current liabilities generally increased over the period, moving from 22.64% to 34.36% in December 2025. This increase aligns with the trends observed in accounts payable, accrued liabilities, and short-term borrowings, indicating a growing short-term obligation burden.

Long-Term Liabilities

Long-term liabilities exhibited a more moderate trend, fluctuating between approximately 28% and 33% of the total. The decline in the latter part of the period may be attributable to debt repayments or reclassifications to current liabilities.

Pension and Postretirement Obligations

Future pension and postretirement benefit obligations decreased substantially over the period, falling from 6.11% to 1.21%. This suggests successful management of pension liabilities, potentially through plan amendments or increased funding.

Shareowners’ Equity

While initially stable, shareowners’ equity experienced a relative decline towards the end of the period, decreasing from 45.64% to 38.14%. This decline was primarily driven by a significant increase in treasury stock, which became a substantial negative component of equity, offsetting gains in retained earnings and common stock. The accumulation of other comprehensive loss also contributed to the decline.

Total Equity

Total equity followed a similar pattern to shareowners’ equity, declining from 45.64% to 39.22% due to the factors mentioned above. The noncontrolling interest remained relatively stable throughout the period.

In summary, the company’s capital structure experienced shifts over the observed period. While liabilities remained a significant component, the most notable change was the decline in shareowners’ equity, primarily driven by treasury stock activity and accumulated losses, which warrants further investigation.