Stock Analysis on Net
Stock Analysis on Net

RTX Corp. (NYSE:RTX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

RTX Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 5.34% = 1.97% × 2.71
Sep 30, 2023 4.59% = 1.96% × 2.33
Jun 30, 2023 7.67% = 3.43% × 2.24
Mar 31, 2023 7.61% = 3.43% × 2.22
Dec 31, 2022 7.16% = 3.27% × 2.19
Sep 30, 2022 6.36% = 2.82% × 2.25
Jun 30, 2022 6.34% = 2.81% × 2.26
Mar 31, 2022 5.79% = 2.63% × 2.20
Dec 31, 2021 5.29% = 2.39% × 2.21
Sep 30, 2021 4.65% = 2.09% × 2.23
Jun 30, 2021 3.07% = 1.37% × 2.23
Mar 31, 2021 -3.74% = -1.67% × 2.24
Dec 31, 2020 -4.88% = -2.17% × 2.25
Sep 30, 2020 -3.67% = -1.55% × 2.37
Jun 30, 2020 -2.42% = -1.01% × 2.40
Mar 31, 2020 10.42% = 2.94% × 3.54
Dec 31, 2019 13.25% = 3.96% × 3.34
Sep 30, 2019 — = — × 3.44
Jun 30, 2019 — = — × 3.41
Mar 31, 2019 — = — × 3.46

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

RTX Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 5.34% = 4.64% × 0.43 × 2.71
Sep 30, 2023 4.59% = 4.76% × 0.41 × 2.33
Jun 30, 2023 7.67% = 7.88% × 0.44 × 2.24
Mar 31, 2023 7.61% = 8.08% × 0.42 × 2.22
Dec 31, 2022 7.16% = 7.75% × 0.42 × 2.19
Sep 30, 2022 6.36% = 6.76% × 0.42 × 2.25
Jun 30, 2022 6.34% = 6.84% × 0.41 × 2.26
Mar 31, 2022 5.79% = 6.47% × 0.41 × 2.20
Dec 31, 2021 5.29% = 6.00% × 0.40 × 2.21
Sep 30, 2021 4.65% = 5.20% × 0.40 × 2.23
Jun 30, 2021 3.07% = 3.51% × 0.39 × 2.23
Mar 31, 2021 -3.74% = -4.44% × 0.38 × 2.24
Dec 31, 2020 -4.88% = -6.22% × 0.35 × 2.25
Sep 30, 2020 -3.67% = -4.20% × 0.37 × 2.37
Jun 30, 2020 -2.42% = -2.52% × 0.40 × 2.40
Mar 31, 2020 10.42% = 5.87% × 0.50 × 3.54
Dec 31, 2019 13.25% = 7.19% × 0.55 × 3.34
Sep 30, 2019 — = — × — × 3.44
Jun 30, 2019 — = — × — × 3.41
Mar 31, 2019 — = — × — × 3.46

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

RTX Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 1.97% = 4.64% × 0.43
Sep 30, 2023 1.96% = 4.76% × 0.41
Jun 30, 2023 3.43% = 7.88% × 0.44
Mar 31, 2023 3.43% = 8.08% × 0.42
Dec 31, 2022 3.27% = 7.75% × 0.42
Sep 30, 2022 2.82% = 6.76% × 0.42
Jun 30, 2022 2.81% = 6.84% × 0.41
Mar 31, 2022 2.63% = 6.47% × 0.41
Dec 31, 2021 2.39% = 6.00% × 0.40
Sep 30, 2021 2.09% = 5.20% × 0.40
Jun 30, 2021 1.37% = 3.51% × 0.39
Mar 31, 2021 -1.67% = -4.44% × 0.38
Dec 31, 2020 -2.17% = -6.22% × 0.35
Sep 30, 2020 -1.55% = -4.20% × 0.37
Jun 30, 2020 -1.01% = -2.52% × 0.40
Mar 31, 2020 2.94% = 5.87% × 0.50
Dec 31, 2019 3.96% = 7.19% × 0.55
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in asset turnover ratio.