RTX Corp. (NYSE:RTX)

The liquidity profile exhibits a gradual contraction over the analyzed period, with a general trend toward lower coverage of short-term obligations, although ratios remain relatively stable around key operational thresholds.

Current Ratio

A gradual downward trend is observed, beginning at 1.16 in March 2022 and declining to 1.01 by June 2026. A notable period of volatility occurred between June 2024 and March 2025, during which the ratio dipped slightly below the 1.00 threshold, reaching a low of 0.99. This indicates a temporary phase where current liabilities exceeded current assets. A moderate recovery occurred in September 2025, peaking at 1.07, before returning to a stabilized level of 1.01.

Quick Ratio

The quick ratio shows a more pronounced decline than the current ratio, moving from 0.76 in March 2022 to a plateau of 0.60 between June 2024 and March 2025. This decline suggests a reduction in the most liquid assets relative to current liabilities. Similar to the current ratio, a slight recovery is evident in late 2025, with the ratio rising to 0.67 before settling at 0.65 by June 2026. The persistent gap between the current and quick ratios suggests that a significant portion of current assets is tied up in inventory.

Cash Ratio

The cash ratio remained the most stable of the three metrics, though it trended slightly lower overall. It began at 0.17 in March 2022 and fluctuated within a narrow range, reaching a minimum of 0.09 in June 2025. By the end of the period in June 2026, the ratio recovered to 0.13. This indicates a consistent but limited reliance on immediate cash reserves to cover short-term liabilities, with liquidity being managed through other current asset classes.

Overall, the convergence of the current ratio toward 1.00 and the stabilization of the quick ratio around 0.60-0.65 suggest a tightening of liquidity margins. However, the ability to maintain these ratios near these levels over several years indicates a controlled approach to working capital management.

An analysis of the liquidity position reveals a gradual compression of the current ratio over the observed period, transitioning from a position of relative surplus to a state of near-equilibrium between short-term assets and obligations.

Current Asset Trajectory

Current assets exhibited a consistent upward trend, increasing from 40,740 million US dollars in March 2022 to 63,912 million US dollars by June 2026. This growth indicates a steady expansion of short-term resources over the multi-year period.

Current Liability Growth

Current liabilities grew at a more aggressive pace than assets, rising from 35,057 million US dollars in March 2022 to 63,245 million US dollars in June 2026. The accelerated increase in short-term obligations served as the primary driver behind the downward pressure on the liquidity ratio.

Current Ratio Dynamics

The current ratio began at 1.16 in March 2022 and experienced a general decline, characterized by volatility throughout 2023. A notable inflection point occurred between June and December 2024, where the ratio fell below the 1.00 threshold, remaining at 0.99 for three consecutive quarters. This period marked a temporary state where current liabilities slightly exceeded current assets.

Stabilization and Convergence

Beginning in March 2025, the ratio recovered to 1.01 and reached a secondary peak of 1.07 in September 2025. However, the ratio subsequently converged back toward 1.01 by June 2026, suggesting a long-term stabilization where short-term assets are managed to closely match current liabilities.

The liquidity position reflects a general contraction in the quick ratio over the analyzed period, characterized by a disconnect between the growth of liquid assets and the expansion of short-term obligations.

Quick Asset Trajectory

Total quick assets demonstrated a consistent upward trend, rising from 26,682 million USD in March 2022 to 41,227 million USD by June 2026. A notable acceleration in asset accumulation occurred in the latter half of 2025, with a significant increase observed between September and December of that year.

Current Liability Expansion

Current liabilities grew at a more aggressive pace than quick assets, increasing from 35,057 million USD in March 2022 to 63,245 million USD in June 2026. This expansion of short-term obligations outpaced the growth of highly liquid assets, contributing to the overall compression of the liquidity ratio.

Quick Ratio Dynamics

The quick ratio began at 0.76 in March 2022 and experienced a gradual decline, reaching a floor of 0.60 between June 2024 and March 2025. A moderate recovery followed in mid-2025, with the ratio peaking at 0.67 before stabilizing at 0.65 through June 2026. The ratio remained consistently below 1.0 throughout the entire period, suggesting that the organization does not maintain sufficient quick assets to cover all current liabilities without relying on the sale of inventory or other non-quick current assets.

Analysis of the liquidity position indicates a general decline in the cash ratio over the observed period, characterized by a divergence between the growth rate of liquid assets and the growth rate of short-term obligations.

Cash Asset Trends

Total cash assets exhibited significant volatility, beginning at 6,040 million in March 2022 and concluding at 8,305 million in June 2026. While the overall absolute value increased over the long term, the progression was marked by several contractions, notably reaching lows of 4,767 million in June 2022 and 4,782 million in June 2025.

Current Liabilities Growth

A consistent and aggressive upward trend in current liabilities is observed throughout the period. Short-term obligations rose from 35,057 million in March 2022 to 63,245 million by June 2026. This sustained increase reflects a substantial expansion of the company's immediate financial commitments.

Cash Ratio Dynamics

The cash ratio experienced a gradual deterioration, falling from a peak of 0.17 in March 2022 to a minimum of 0.09 in June 2025. This downward trajectory is a direct result of current liabilities expanding at a pace that significantly outstripped the growth of total cash assets. In the final three quarters of the analysis, the ratio stabilized, fluctuating within a narrow range between 0.12 and 0.13.

The overall trend suggests a weakened immediate capacity to settle current liabilities using only the most liquid assets. Although cash balances reached their highest absolute levels toward the end of the period, the simultaneous surge in current liabilities has resulted in a lower overall liquidity buffer compared to the initial baseline.