Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

RTX Corp., balance sheet: inventory

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Raw materials	3,911)	3,477)	3,024)	3,015)	3,357)
Work-in-process	4,162)	3,839)	3,085)	2,924)	2,726)
Finished goods	3,704)	3,301)	3,069)	3,472)	4,867)
Inventory, net	11,777)	10,617)	9,178)	9,411)	10,950)

Based on: 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).

Download chart

Item	Description	The company
Inventory, net	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	RTX Corp. inventory, net increased from 2021 to 2022 and from 2022 to 2023.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Inventory, Net
Inventory, net at LIFO (as reported)	11,777)	10,617)	9,178)	9,411)	10,950)
Add: Inventory LIFO reserve	—)	—)	—)	—)	126)
Inventory, net at FIFO (adjusted)	11,777)	10,617)	9,178)	9,411)	11,076)
Adjustment to Current Assets
Current assets (as reported)	48,417)	42,443)	42,050)	43,376)	37,497)
Add: Inventory LIFO reserve	—)	—)	—)	—)	126)
Current assets (adjusted)	48,417)	42,443)	42,050)	43,376)	37,623)
Adjustment to Total Assets
Total assets (as reported)	161,869)	158,864)	161,404)	162,153)	139,716)
Add: Inventory LIFO reserve	—)	—)	—)	—)	126)
Total assets (adjusted)	161,869)	158,864)	161,404)	162,153)	139,842)
Adjustment to Shareowners’ Equity
Shareowners’ equity (as reported)	59,798)	72,632)	73,068)	72,163)	41,774)
Add: Inventory LIFO reserve	—)	—)	—)	—)	126)
Shareowners’ equity (adjusted)	59,798)	72,632)	73,068)	72,163)	41,900)
Adjustment to Net Income (loss) Attributable To Common Shareowners
Net income (loss) attributable to common shareowners (as reported)	3,195)	5,197)	3,864)	(3,519)	5,537)
Add: Increase (decrease) in inventory LIFO reserve	—)	—)	—)	—)	7)
Net income (loss) attributable to common shareowners (adjusted)	3,195)	5,197)	3,864)	(3,519)	5,544)

Based on: 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).

RTX Corp. inventory value on Dec 31, 2023 would be $11,777) (in millions) if the FIFO inventory method was used instead of LIFO. RTX Corp. inventories, valued on a LIFO basis, on Dec 31, 2023 were $11,777). RTX Corp. inventories would have been $—) higher than reported on Dec 31, 2023 if the FIFO method had been used instead.

RTX Corp., Financial Data: Reported vs. Adjusted

Download chart

RTX Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current Ratio
Reported current ratio (LIFO)	1.04	1.09	1.19	1.21	1.08
Adjusted current ratio (FIFO)	1.04	1.09	1.19	1.21	1.09
Net Profit Margin
Reported net profit margin (LIFO)	4.64%	7.75%	6.00%	-6.22%	7.19%
Adjusted net profit margin (FIFO)	4.64%	7.75%	6.00%	-6.22%	7.20%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.43	0.42	0.40	0.35	0.55
Adjusted total asset turnover (FIFO)	0.43	0.42	0.40	0.35	0.55
Financial Leverage
Reported financial leverage (LIFO)	2.71	2.19	2.21	2.25	3.34
Adjusted financial leverage (FIFO)	2.71	2.19	2.21	2.25	3.34
Return on Equity (ROE)
Reported ROE (LIFO)	5.34%	7.16%	5.29%	-4.88%	13.25%
Adjusted ROE (FIFO)	5.34%	7.16%	5.29%	-4.88%	13.23%
Return on Assets (ROA)
Reported ROA (LIFO)	1.97%	3.27%	2.39%	-2.17%	3.96%
Adjusted ROA (FIFO)	1.97%	3.27%	2.39%	-2.17%	3.96%

Based on: 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).

Financial ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	RTX Corp. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	RTX Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	RTX Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	RTX Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	RTX Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	RTX Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

RTX Corp., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Current assets	48,417)	42,443)	42,050)	43,376)	37,497)
Current liabilities	46,761)	39,114)	35,449)	35,848)	34,586)
Liquidity Ratio
Current ratio¹	1.04	1.09	1.19	1.21	1.08
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted current assets	48,417)	42,443)	42,050)	43,376)	37,623)
Current liabilities	46,761)	39,114)	35,449)	35,848)	34,586)
Liquidity Ratio
Adjusted current ratio²	1.04	1.09	1.19	1.21	1.09

Based on: 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).

2023 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 48,417 ÷ 46,761 = 1.04

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 48,417 ÷ 46,761 = 1.04

Download chart

Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	RTX Corp. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Profitability Ratio
Net profit margin¹	4.64%	7.75%	6.00%	-6.22%	7.19%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,544)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Profitability Ratio
Adjusted net profit margin²	4.64%	7.75%	6.00%	-6.22%	7.20%

Based on: 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).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 3,195 ÷ 68,920 = 4.64%

² Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 3,195 ÷ 68,920 = 4.64%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	RTX Corp. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Total assets	161,869)	158,864)	161,404)	162,153)	139,716)
Activity Ratio
Total asset turnover¹	0.43	0.42	0.40	0.35	0.55
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Net sales	68,920)	67,074)	64,388)	56,587)	77,046)
Adjusted total assets	161,869)	158,864)	161,404)	162,153)	139,842)
Activity Ratio
Adjusted total asset turnover²	0.43	0.42	0.40	0.35	0.55

Based on: 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).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 68,920 ÷ 161,869 = 0.43

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 68,920 ÷ 161,869 = 0.43

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	RTX Corp. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	161,869)	158,864)	161,404)	162,153)	139,716)
Shareowners’ equity	59,798)	72,632)	73,068)	72,163)	41,774)
Solvency Ratio
Financial leverage¹	2.71	2.19	2.21	2.25	3.34
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted total assets	161,869)	158,864)	161,404)	162,153)	139,842)
Adjusted shareowners’ equity	59,798)	72,632)	73,068)	72,163)	41,900)
Solvency Ratio
Adjusted financial leverage²	2.71	2.19	2.21	2.25	3.34

Based on: 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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareowners’ equity
= 161,869 ÷ 59,798 = 2.71

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareowners’ equity
= 161,869 ÷ 59,798 = 2.71

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	RTX Corp. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Shareowners’ equity	59,798)	72,632)	73,068)	72,163)	41,774)
Profitability Ratio
ROE¹	5.34%	7.16%	5.29%	-4.88%	13.25%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,544)
Adjusted shareowners’ equity	59,798)	72,632)	73,068)	72,163)	41,900)
Profitability Ratio
Adjusted ROE²	5.34%	7.16%	5.29%	-4.88%	13.23%

Based on: 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).

2023 Calculations

¹ ROE = 100 × Net income (loss) attributable to common shareowners ÷ Shareowners’ equity
= 100 × 3,195 ÷ 59,798 = 5.34%

² Adjusted ROE = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Adjusted shareowners’ equity
= 100 × 3,195 ÷ 59,798 = 5.34%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	RTX Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Total assets	161,869)	158,864)	161,404)	162,153)	139,716)
Profitability Ratio
ROA¹	1.97%	3.27%	2.39%	-2.17%	3.96%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,544)
Adjusted total assets	161,869)	158,864)	161,404)	162,153)	139,842)
Profitability Ratio
Adjusted ROA²	1.97%	3.27%	2.39%	-2.17%	3.96%

Based on: 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).

2023 Calculations

¹ ROA = 100 × Net income (loss) attributable to common shareowners ÷ Total assets
= 100 × 3,195 ÷ 161,869 = 1.97%

² Adjusted ROA = 100 × Adjusted net income (loss) attributable to common shareowners ÷ Adjusted total assets
= 100 × 3,195 ÷ 161,869 = 1.97%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	RTX Corp. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

RTX Corp. (NYSE:RTX)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

RTX Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

RTX Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)