RTX Corp. (NYSE:RTX)

Current Assets

The current assets showed a slight decrease from 43,376 million US dollars at the end of 2020 to 42,050 million US dollars in 2021, indicating a modest contraction during that period. However, the figure rebounded marginally to 42,443 million in 2022. Starting in 2023, a significant upward trend became evident, with current assets increasing to 48,417 million and further rising to 51,133 million by the end of 2024. This growth reflects a strengthening liquidity position in the later years.

Adjusted Current Assets

The adjusted current assets followed a pattern similar to total current assets. Beginning at 43,922 million US dollars in 2020, there was a small decline to 42,525 million in 2021. This was followed by a steady, moderate increase to 42,895 million in 2022. Subsequently, the adjusted current assets experienced a pronounced increase in 2023 and 2024, reaching 48,733 million and 51,422 million respectively. The adjusted figures consistently slightly exceeded the unadjusted current asset values, suggesting some form of valuation or reclassification adjustment retained a stable positive effect throughout the period.

General Observations

Overall, both current assets and adjusted current assets demonstrated a dip in the initial years followed by robust growth in the latter years. The significant rise from 2023 onwards could indicate improved operational performance, enhanced asset management, or increased cash and receivables levels. The adjustments made to current assets appear consistently beneficial, adding marginally to the reported values throughout the timeline, suggesting conservative management or accounting practices that enhance the reported liquidity position without causing volatility.

Total assets

The total assets show a slight downward trend from 2020 to 2022, decreasing from 162,153 million US dollars to 158,864 million US dollars. Following this decline, the total assets gradually increased in 2023 and 2024, reaching 162,861 million US dollars by the end of 2024. Overall, total assets experienced relatively minor fluctuations with a small net increase over the five-year period.

Adjusted total assets

The adjusted total assets follow a similar pattern to the total assets, with an initial decrease from 162,699 million US dollars in 2020 to 159,316 million US dollars in 2022. Thereafter, they rose to 162,185 million US dollars in 2023 and further to 163,150 million US dollars by the end of 2024. The adjusted total assets remain consistently slightly higher than the reported total assets throughout the period, reflecting adjustments that increase the asset base modestly over time.

The analysis of the annual liabilities data reveals several notable trends over the five-year period from 2020 to 2024.

Total Liabilities

Total liabilities initially exhibit a gradual decline from 88,269 million US dollars in 2020 to 84,650 million in 2022. This downward trend suggests a period of liability reduction or repayment efforts during these years. However, the trend reverses sharply in 2023, where total liabilities increase significantly to 100,424 million US dollars, representing an approximate rise of 18.6% from the previous year. By 2024, total liabilities marginally increase further to 100,903 million US dollars, indicating stabilization at this higher level.

Adjusted Total Liabilities

The adjusted total liabilities follow a similar pattern to the total liabilities but remain consistently lower in absolute terms across all years. The adjusted figure decreases steadily from 83,776 million in 2020 to 81,071 million in 2022, reflecting a 3.3% reduction over the initial three-year span. Subsequently, there is a sharp increase in 2023 to 97,409 million, an approximate 20.2% rise compared to 2022. In 2024, adjusted total liabilities increase slightly again to 98,051 million, suggesting a maintained elevated level similar to total liabilities.

The overall trend indicates a phase of liability reduction or optimization between 2020 and 2022, followed by a considerable increase in both total and adjusted liabilities starting in 2023. This significant uptick might be linked to increased borrowing, acquisition activities, or changes in financial strategy during the latter years. The adjusted liabilities, consistently lower than total liabilities, suggest adjustments accounting for particular financial considerations but mirror the general trend quite closely.

Shareowners’ Equity

Shareowners’ equity exhibited a relatively stable trend from 2020 through 2022, with values close to the 72,000 million US-dollar mark. However, there was a notable decline beginning in 2023, dropping to approximately 59,798 million US dollars, followed by a slight increase to 60,156 million US dollars in 2024. This pattern suggests a period of financial contraction or adjustments impacting equity during 2023, with some recovery in the subsequent year.

Adjusted Total Equity

Adjusted total equity followed a similar pattern but maintained higher values than shareowners’ equity throughout the period. It increased moderately from 78,923 million US dollars in 2020 to 80,184 million US dollars in 2021, then declined to 78,245 million US dollars in 2022. A more pronounced drop occurred in 2023, falling to 64,776 million US dollars, with a modest rise to 65,099 million US dollars in 2024. This trend mirrors the behavior of shareowners’ equity, indicating consistent factors affecting both metrics.

Overall Analysis

The data reveals relative stability in equity levels during the initial three years, followed by a significant reduction in 2023 and a slight rebound in 2024. The similarity between shareowners’ equity and adjusted total equity trends suggests that the factors influencing these figures, such as operational performance, market conditions, or accounting adjustments, had parallel effects on the company's equity positions. The decline in 2023 indicates potential challenges or restructuring effects during that period, which partially eased but did not fully revert by 2024.

The financial data reveals several notable trends in the company’s capital structure over the five-year period from 2020 to 2024.

Total Reported Debt

The total reported debt remained relatively stable from 2020 through 2022, fluctuating slightly around the 31,400 million USD mark. However, a significant increase occurred in 2023, where the debt surged to 43,827 million USD before slightly declining to 41,261 million USD in 2024. This pattern suggests a considerable borrowing or liability increase in 2023, followed by some deleveraging or repayment the following year.

Shareowners’ Equity

Shareowners’ equity shows a relatively stable trend between 2020 and 2022, hovering around 72,000 million USD. In 2023, equity declined markedly to 59,798 million USD and remained almost flat in 2024 with a minor increase to 60,156 million USD. This reduction in equity may indicate losses, dividends, or other equity-reducing transactions during 2023, affecting the overall net asset base.

Total Reported Capital

Total reported capital was steady near 104,000 million USD between 2020 and 2022 but experienced a gradual decrease in the last two years, falling to 103,625 million USD in 2023 and further to 101,417 million USD in 2024. This decline reflects the combined effects of changes in debt and equity, indicating a modest contraction in the total capital base.

Adjusted Total Debt

The adjusted total debt exhibits a pattern similar to total reported debt. It was stable around 33,800 million USD from 2020 to 2022, then rose sharply in 2023 to 45,587 million USD and slightly decreased to 43,260 million USD in 2024. The adjusted debt figures suggest the company’s leverage increased notably in 2023, followed by a partial reduction in the subsequent year, potentially reflecting adjustments for off-balance-sheet liabilities or other factors.

Adjusted Total Equity

Adjusted total equity remained stable above 78,000 million USD through 2022 but dropped significantly to 64,776 million USD in 2023 with a slight increase to 65,099 million USD in 2024. This trend mirrors the decline observed in reported equity, indicating a similar impact from adjustments, which may include valuation changes or recognition of intangible assets/liabilities.

Adjusted Total Capital

Adjusted total capital was robust and fairly consistent between 112,000 and 114,000 million USD from 2020 to 2021. It experienced a decrease to approximately 110,363 million USD in 2023 and further to 108,359 million USD in 2024. This gradual decline reflects the combined impact of the rising adjusted debt and declining adjusted equity, suggesting a shrinking adjusted capital base.

Overall, the data indicates a period of relative stability in leverage and capital during the initial years, followed by a marked increase in debt levels and a decline in equity starting in 2023. The increased leverage combined with reduced equity points to a potential shift in the company’s risk profile and capital structure, warranting further investigation into the underlying causes such as operational performance, strategic financing decisions, or market conditions impacting the company during that period.

The financial data reveals notable fluctuations in net income and adjusted net income over the five-year period from December 31, 2020, through December 31, 2024.

Net Income (Loss) Attributable to Common Shareowners

The net income showed a significant improvement from a substantial loss of 3519 million US dollars in 2020 to a positive net income of 3864 million US dollars in 2021. This positive trend continued in 2022, with net income rising to 5197 million dollars, indicating strong profitability. However, in 2023, there was a noticeable decline to 3195 million dollars, suggesting some challenges or increased expenses during that year. The net income rebounded in 2024 to 4774 million dollars, reflecting a recovery though not reaching the previous peak of 2022.

Adjusted Net Income (Loss)

Adjusted net income displayed a different pattern. Starting near break-even with a loss of 195 million dollars in 2020, it surged significantly in 2021, reaching 5805 million dollars, the highest figure in the five-year timeline. This value then decreased in 2022 to 3538 million dollars and further declined to 2441 million dollars in 2023, before increasing again to 3603 million dollars in 2024. The pattern suggests fluctuations in non-operating or one-time adjustments affecting this metric more strongly than the reported net income.

Overall, the company exhibited a substantial turnaround from losses in 2020 to strong profitability in subsequent years. While both net income and adjusted net income reached their highest levels in 2021 or 2022, both metrics experienced declines in 2023 followed by partial recovery in 2024. The differences in trends between net income and adjusted net income suggest the presence of variable one-time items or adjustments impacting the adjusted figures more significantly. Continuous monitoring is advisable to understand drivers behind these fluctuations and to assess sustainability of the profitability levels achieved.