Stock Analysis on Net

RTX Corp. (NYSE:RTX)

$24.99

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

RTX Corp., operating profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The operating profit margin exhibited a generally positive trend from 2005 through 2015, followed by significant volatility and a subsequent recovery. Initial values were in the low double digits, increasing to a peak in 2015 before experiencing a substantial decline.

Overall Trend (2005-2015)
From 2005 to 2015, the operating profit margin demonstrated a consistent upward trajectory, increasing from 12.26% to 15.01%. This indicates improving operational efficiency and profitability during this period. The margin exceeded 13% starting in 2010 and remained above that level for five consecutive years.
Significant Decline (2016-2020)
A marked decrease in the operating profit margin occurred in 2016, falling to 13.00% before plummeting to -3.34% in 2020. This represents a substantial shift in profitability, likely attributable to significant challenges impacting revenue or increased operational costs. The negative value in 2020 indicates an operating loss for that year.
Recovery and Recent Performance (2021-2025)
Following the loss in 2020, the operating profit margin began a recovery, reaching 7.70% in 2021 and 8.07% in 2022. This upward momentum continued, with the margin reaching 10.50% in 2025. While not returning to the peak levels observed between 2013 and 2015, the recent performance suggests a stabilization and improvement in operational profitability.

The fluctuation in operating profit margin suggests the company’s profitability is sensitive to external factors or internal strategic shifts. The period of decline warrants further investigation to understand the underlying causes, while the recent recovery indicates successful mitigation efforts or favorable market conditions.

Net Sales Correlation
While not the primary focus, net sales generally increased from 2005 to 2019, coinciding with the rise in operating profit margin. The significant drop in net sales in 2020 aligns with the negative operating profit margin, reinforcing the impact of revenue on profitability. The subsequent increase in both net sales and operating profit margin from 2021 to 2025 suggests a positive correlation between revenue generation and operational performance.

Comparison to Competitors