Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
RTX Corp., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 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).
The analysis of the financial ratios over the series of quarterly periods reveals several notable trends and developments in the firm's operational efficiency and asset utilization.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates a generally consistent upward trend from March 2021 through March 2025. Starting at 3.78, the ratio steadily increases with minor fluctuations, reaching a high of 5.07 in March 2025. This indicates improving efficiency in using fixed assets to generate sales revenue over time. The slight dips and variations in some quarters suggest periodic adjustments or changes in asset base or sales activity, but the overall trajectory remains positive.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This measure, which accounts for operating leases and right-of-use assets, follows a similar upward trend to net fixed asset turnover, albeit at somewhat lower absolute values. Beginning at 3.36 in March 2021, it exhibits a steady increase to 4.53 by March 2025. The pattern signifies improvements in asset utilization when considering leased assets, reflecting possibly enhanced management of leased versus owned assets and operational efficiency in asset deployment.
- Total Asset Turnover
- The total asset turnover ratio shows moderate but steady growth across the periods observed. From a starting point of 0.35 in March 2021, it grows incrementally to reach 0.50 by March 2025. This gradual increase reflects a consistent improvement in the overall effectiveness of the company's asset base in generating revenues. The steady pace of increase suggests balanced growth in sales relative to total assets, without significant volatility.
- Equity Turnover
- Equity turnover exhibits an overall improving trend as well. Beginning at 0.78 in March 2021, it increases to 1.33 in March 2025 with some intermittent fluctuations. Notably, there is a significant jump between December 2022 (0.96) and March 2024 (1.15 and above), indicating an enhanced ability to generate sales from shareholders’ equity in the more recent periods. This improvement may point to changes in capital structure, enhanced sales generation, or both.
Overall, the data suggests that the company is progressively enhancing its efficiency in utilizing its fixed assets, including leased assets, total asset base, and equity to generate revenues. The positive trends across these turnover ratios over multiple years indicate operational improvements and potentially effective asset management strategies. While minor periodic fluctuations exist, the consistent upward trajectories highlight strengthening asset and equity performance contributing to the firm's revenue growth capabilities.
Net Fixed Asset Turnover
RTX Corp., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Fixed assets, net | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 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).
1 Q1 2025 Calculation
Net fixed asset turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Fixed assets, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net sales of the company exhibit a general upward trend over the analyzed periods, with notable fluctuations. Starting at approximately US$11.36 billion in March 2020, net sales increased steadily, reaching around US$17.04 billion by December 2021. There is a slight decline from December 2021 to September 2023, where net sales drop to about US$13.46 billion, the lowest point since mid-2020. Following this dip, a significant recovery occurs, with net sales climbing again to over US$21.6 billion by March 2025, marking the highest value in the dataset.
Net fixed assets, reported in US$ millions, show a relatively stable pattern with moderate growth. Beginning near US$12.48 billion in March 2020, the asset base increases moderately over time, reaching approximately US$16.14 billion by March 2025. Despite minor fluctuations, the trend remains broadly positive, indicating steady investment or capital retention in fixed assets.
The net fixed asset turnover ratio, which measures the efficiency in using fixed assets to generate sales, indicates improvement over the periods provided. Starting from 3.78 in September 2020, the ratio gradually rises, highlighting enhanced asset utilization. By March 2025, this ratio reaches 5.07, showing the company is generating significantly more sales per unit of fixed asset value than in earlier periods. This upward movement signals growing operational efficiency or improved asset management practices.
Overall, the company demonstrates progressive growth in sales, supported by steady investment in fixed assets and increasing efficiency in asset usage. The temporary sales decline observed between late 2021 and late 2023 suggests some challenges during that interval, but the strong rebound afterward points to effective responses or market recovery.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
RTX Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Fixed assets, net | ||||||||||||||||||||||||||||
| Operating lease right-of-use assets | ||||||||||||||||||||||||||||
| Fixed assets, net (including operating lease, right-of-use asset) | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 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).
1 Q1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Fixed assets, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The data reveals a generally upward trend in net sales over the observed periods, despite some fluctuations. Starting from US$11,360 million in March 2020, net sales grew substantially to peak at US$18,315 million in June 2023. However, there was a notable decline to US$13,464 million in September 2023 before resuming an increasing trend, reaching US$20,306 million by March 2025. This indicates some volatility but overall growth in revenue generation.
Fixed assets, net (including operating lease, right-of-use asset), showed a relatively stable pattern with gradual increase over time. Beginning at US$15,108 million in March 2020, the figure rose to US$18,034 million by September 2024 and further to US$18,034 million by March 2025. There were minor decreases observed at times, but the general trajectory is consistent growth in asset base size.
Net fixed asset turnover, which measures the efficiency of asset use to generate sales, displayed a steady improvement. Starting from a ratio of 3.36 in December 2020, the turnover rose gradually, reaching 4.53 by March 2025. This increase suggests enhanced productivity of fixed assets, with the company generating more sales per unit of fixed assets over time.
- Net Sales
- Overall upward trend from US$11,360 million in March 2020 to US$20,306 million in March 2025.
- Exhibited a volatility with a peak in mid-2023 followed by a dip, then continued growth.
- Fixed Assets, Net
- Moderately stable and gradually increasing from US$15,108 million in March 2020 to approximately US$18,034 million by March 2025.
- Minor fluctuations indicate careful asset management with incremental investments over the years.
- Net Fixed Asset Turnover
- Improved from 3.36 in December 2020 to 4.53 in March 2025.
- Signifies improving operational efficiency and better utilization of fixed assets to generate sales.
In summary, the company demonstrates growth in sales alongside a growing but well-managed asset base. The increasing asset turnover ratio reflects improved asset utilization efficiency, indicating positive operational management and the potential for enhanced profitability through effective use of resources.
Total Asset Turnover
RTX Corp., total asset turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 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).
1 Q1 2025 Calculation
Total asset turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The data indicates a general upward trend in net sales over the observed periods, with some fluctuations. Initially, net sales increased steadily from 11,360 million US$ in March 2020 to a peak of 18,315 million US$ in June 2023. However, a notable decline occurred in September 2023, with net sales dropping to 13,464 million US$, followed by a rapid recovery reaching 21,623 million US$ by March 2025. This suggests a temporary disruption or seasonal variation during late 2023, succeeded by strong growth.
Total assets demonstrated relative stability with slight fluctuations throughout the timeline. Beginning at 139,572 million US$ in March 2020, assets increased significantly in mid-2020, peaking around 162,443 million US$ in September 2023. After this peak, total assets showed a modest decline and then stabilized, ending at 164,864 million US$ in March 2025. Overall, total assets reflect conservative management of asset base with restrained growth.
The total asset turnover ratio shows an improving efficiency in utilizing assets to generate sales. Starting from 0.35 in December 2020, the ratio rose gradually, reaching 0.50 by March 2025. This steady increase indicates enhanced operational efficiency in converting assets into revenue over time.
- Net Sales
- Exhibited a consistent increase punctuated by a significant dip in late 2023, followed by a strong recovery to the highest level recorded at the end of the period.
- Total Assets
- Displayed moderate growth with some volatility, maintaining a fairly consistent asset base without drastic expansions or contractions.
- Total Asset Turnover
- Improved steadily, reflecting better asset utilization and operational efficiency throughout the observed timeframe.
In summary, the company’s financial data shows a positive trajectory in revenue generation and efficiency, with careful asset management. The sharp dip in sales during late 2023 warrants further investigation, but the swift recovery suggests resilience and effective corrective measures.
Equity Turnover
RTX Corp., equity turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 3, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||
| Shareowners’ equity | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-03), 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).
1 Q1 2025 Calculation
Equity turnover
= (Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024
+ Net salesQ2 2024)
÷ Shareowners’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The net sales of the company demonstrate a fluctuating trend over the analyzed periods. Initially, there is a notable increase from US$11,360 million in March 2020 to a peak of US$18,315 million in June 2023. However, this is followed by a sharp decline to US$13,464 million by September 2023. After this dip, net sales recover and continue to grow steadily, reaching US$20,306 million by March 2025. This pattern suggests periods of volatility but an overall upward trajectory in revenue generation.
Shareowners’ equity shows a markedly different pattern. There is a strong rise from US$39,411 million in March 2020 to a high of approximately US$73,068 million by December 2021, indicating significant strengthening of the equity base. Post this peak, equity levels decline gradually, falling to around US$59,798 million in March 2024, with slight fluctuations thereafter, ending at approximately US$61,516 million in March 2025. This decline in equity after the peak may reflect distribution to shareholders, losses, or other equity-reducing activities.
The equity turnover ratio, available from September 2020 onwards, reveals an improving efficiency in utilizing equity to generate sales. The ratio increases from 0.78 in September 2020 to 1.34 by March 2025, with minor short-term fluctuations. This consistent upward movement indicates enhanced effectiveness in leveraging equity investments to produce revenue over the periods analyzed.
- Key Observations
-
Net sales generally trend upward with some intermittent volatility, notably a sharp drop in late 2023 followed by recovery and growth.
Shareowners’ equity rises sharply in the initial years but subsequently experiences a notable decline and stabilizes at a lower level compared to its peak.
Equity turnover improves steadily, reflecting enhanced operational efficiency and better utilization of the equity base.
- Interpretation
-
The initial increase in both net sales and equity suggests a phase of expansion or positive market conditions. The subsequent decline in equity despite growing sales may imply capital returns, restructuring, or other financial adjustments.
Increasing equity turnover indicates that the company is generating more sales per unit of equity, which is indicative of improved asset management or operational performance over time.
- Conclusions
-
Overall, the financial trends reveal an organization that has experienced growth with some periods of adjustment. The improving equity turnover amid fluctuating equity and net sales underscores efforts to optimize capital efficiency and sustain revenue growth.