Stock Analysis on Net

Raytheon Technologies Corp. (NYSE:RTX)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Raytheon Technologies Corp., profitability ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Return on Sales
Gross profit margin 19.40% 15.08% 25.93% 24.84% 26.55%
Operating profit margin 7.70% -3.34% 11.64% 12.86% 14.49%
Net profit margin 6.00% -6.22% 7.19% 7.92% 7.61%
Return on Investment
Return on equity (ROE) 5.29% -4.88% 13.25% 13.70% 15.37%
Return on assets (ROA) 2.39% -2.17% 3.96% 3.93% 4.70%

Based on: 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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Raytheon Technologies Corp. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Raytheon Technologies Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Raytheon Technologies Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Raytheon Technologies Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
ROA A profitability ratio calculated as net income divided by total assets. Raytheon Technologies Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Gross Profit Margin

Raytheon Technologies Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Gross margin 12,491 8,531 19,981 16,516 15,884
Net sales 64,388 56,587 77,046 66,501 59,837
Profitability Ratio
Gross profit margin1 19.40% 15.08% 25.93% 24.84% 26.55%
Benchmarks
Gross Profit Margin, Competitors2
Boeing Co. 4.84% -9.78% 5.83% 19.42% 18.55%
Caterpillar Inc. 26.30% 25.47% 27.83% 28.61% 27.24%
General Electric Co. 24.19% 17.26% 23.52% 18.38% 18.78%
Honeywell International Inc. 31.98% 32.07% 33.70% 30.52% 31.97%
Lockheed Martin Corp. 13.52% 13.23% 13.99% 13.53%
Northrop Grumman Corp. 20.38% 20.32% 21.45% 22.57%

Based on: 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).

1 2021 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 12,491 ÷ 64,388 = 19.40%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Raytheon Technologies Corp. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Operating Profit Margin

Raytheon Technologies Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Operating profit (loss) 4,958 (1,889) 8,966 8,553 8,672
Net sales 64,388 56,587 77,046 66,501 59,837
Profitability Ratio
Operating profit margin1 7.70% -3.34% 11.64% 12.86% 14.49%
Benchmarks
Operating Profit Margin, Competitors2
Boeing Co. -4.66% -21.95% -2.58% 11.85% 11.01%
Caterpillar Inc. 14.27% 11.67% 16.33% 16.00% 10.32%
General Electric Co. 8.58% 5.49% 12.84% 9.54% 9.06%
Honeywell International Inc. 18.03% 17.45% 18.66% 16.04% 17.64%
Lockheed Martin Corp. 13.61% 13.22% 14.29% 13.64%
Northrop Grumman Corp. 15.84% 11.05% 11.73% 12.56%
Operating Profit Margin, Sector
Capital Goods 9.40% 3.41% 10.87% 12.53%
Operating Profit Margin, Industry
Industrials 11.00% 5.04% 11.82% 12.80%

Based on: 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).

1 2021 Calculation
Operating profit margin = 100 × Operating profit (loss) ÷ Net sales
= 100 × 4,958 ÷ 64,388 = 7.70%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Raytheon Technologies Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Net Profit Margin

Raytheon Technologies Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,864 (3,519) 5,537 5,269 4,552
Net sales 64,388 56,587 77,046 66,501 59,837
Profitability Ratio
Net profit margin1 6.00% -6.22% 7.19% 7.92% 7.61%
Benchmarks
Net Profit Margin, Competitors2
Boeing Co. -6.75% -20.42% -0.83% 10.34% 8.78%
Caterpillar Inc. 13.47% 7.68% 12.00% 11.86% 1.77%
General Electric Co. -9.17% 7.81% -5.69% -19.69% -5.11%
Honeywell International Inc. 16.11% 14.64% 16.73% 16.18% 4.08%
Lockheed Martin Corp. 9.42% 10.45% 10.42% 9.39%
Northrop Grumman Corp. 19.64% 8.67% 6.64% 10.73%
Net Profit Margin, Sector
Capital Goods 4.83% 2.24% 4.89% 3.17%
Net Profit Margin, Industry
Industrials 7.21% 2.10% 5.89% 5.25%

Based on: 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).

1 2021 Calculation
Net profit margin = 100 × Net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 3,864 ÷ 64,388 = 6.00%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Raytheon Technologies Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Return on Equity (ROE)

Raytheon Technologies Corp., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,864 (3,519) 5,537 5,269 4,552
Shareowners’ equity 73,068 72,163 41,774 38,446 29,610
Profitability Ratio
ROE1 5.29% -4.88% 13.25% 13.70% 15.37%
Benchmarks
ROE, Competitors2
Boeing Co. 3,085.55% 2,309.01%
Caterpillar Inc. 39.37% 19.56% 41.77% 43.79% 5.50%
General Electric Co. -16.17% 16.04% -17.58% -72.16% -9.00%
Honeywell International Inc. 29.85% 27.23% 33.22% 37.21% 9.58%
Lockheed Martin Corp. 57.62% 113.60% 199.23% 361.98%
Northrop Grumman Corp. 54.19% 30.14% 25.49% 39.44%
ROE, Sector
Capital Goods 11.76% 5.84% 19.38% 13.05%
ROE, Industry
Industrials 19.68% 6.08% 22.41% 19.96%

Based on: 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).

1 2021 Calculation
ROE = 100 × Net income (loss) attributable to common shareowners ÷ Shareowners’ equity
= 100 × 3,864 ÷ 73,068 = 5.29%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Raytheon Technologies Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Return on Assets (ROA)

Raytheon Technologies Corp., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,864 (3,519) 5,537 5,269 4,552
Total assets 161,404 162,153 139,716 134,211 96,920
Profitability Ratio
ROA1 2.39% -2.17% 3.96% 3.93% 4.70%
Benchmarks
ROA, Competitors2
Boeing Co. -3.03% -7.80% -0.48% 8.91% 8.88%
Caterpillar Inc. 7.84% 3.83% 7.77% 7.83% 0.98%
General Electric Co. -3.28% 2.25% -1.87% -7.23% -1.53%
Honeywell International Inc. 8.60% 7.40% 10.47% 11.71% 2.79%
Lockheed Martin Corp. 12.41% 13.47% 13.11% 11.24%
Northrop Grumman Corp. 16.45% 7.17% 5.47% 8.58%
ROA, Sector
Capital Goods 2.50% 1.01% 2.70% 1.87%
ROA, Industry
Industrials 4.23% 1.07% 3.68% 3.45%

Based on: 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).

1 2021 Calculation
ROA = 100 × Net income (loss) attributable to common shareowners ÷ Total assets
= 100 × 3,864 ÷ 161,404 = 2.39%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Raytheon Technologies Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.