Stock Analysis on Net
Stock Analysis on Net

RTX Corp. (NYSE:RTX)

Common-Size Income Statement 

RTX Corp., common-size consolidated income statement

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Products sales 73.83 71.93 75.70 76.52 76.55
Services sales 26.17 28.07 24.30 23.48 23.45
Net sales 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of sales, products -62.88 -63.01 -62.51 -63.82 -67.40
Cost of sales, services -18.03 -19.45 -17.11 -16.78 -17.53
Cost of sales -80.91% -82.46% -79.62% -80.60% -84.92%
Gross margin 19.09% 17.54% 20.38% 19.40% 15.08%
Research and development -3.63 -4.07 -4.04 -4.24 -4.56
Selling, general, and administrative -7.19 -8.43 -8.44 -8.11 -9.79
Goodwill impairment 0.00 0.00 0.00 0.00 -5.62
Other income (expense), net -0.16 0.12 0.18 0.66 1.56
Operating profit (loss) 8.10% 5.17% 8.07% 7.70% -3.34%
Non-service pension income 1.88 2.58 2.82 3.02 1.59
Debt extinguishment costs 0.00 0.00 0.00 -1.01 0.00
Interest expense -2.44 -2.40 -1.94 -2.07 -2.53
Interest income 0.13 0.15 0.10 0.06 0.07
Other non-operating income (expense) 0.01 0.07 -0.07 -0.04 0.04
Interest expense, net -2.31% -2.18% -1.90% -2.05% -2.41%
Non-operating income (expense), net -0.43% 0.40% 0.91% -0.04% -0.82%
Income (loss) from continuing operations before income taxes 7.67% 5.57% 8.99% 7.66% -4.16%
Income tax expense -1.46 -0.66 -1.04 -1.22 -1.02
Net income (loss) from continuing operations 6.21% 4.90% 7.94% 6.44% -5.17%
Loss from discontinued operations 0.00 0.00 -0.03 -0.05 -0.65
Net income (loss) 6.21% 4.90% 7.91% 6.39% -5.82%
Noncontrolling interest in subsidiaries’ earnings -0.30 -0.27 -0.17 -0.39 -0.40
Net income (loss) attributable to common shareowners 5.91% 4.64% 7.75% 6.00% -6.22%

Based on: 10-K (reporting date: 2024-12-31), 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).

Sales Composition
Products sales as a percentage of net sales exhibit a declining trend from 76.55% in 2020 to a low of 71.93% in 2023, followed by a slight recovery to 73.83% in 2024. Conversely, services sales show an increasing trend from 23.45% in 2020, peaking at 28.07% in 2023, then tapering to 26.17% in 2024, indicating a shift in revenue mix toward services over the period.
Cost of Sales
The cost of sales for products decreased significantly from -67.4% in 2020 to around -62.5% from 2022 onward, indicating improved cost management or changes in product pricing. Cost of sales for services fluctuated, increasing from -17.53% to a high of -19.45% in 2023 before slightly decreasing to -18.03% in 2024. Overall cost of sales as a percentage of net sales declined from -84.92% in 2020 to around -80.90% in 2024, reflecting improved gross efficiency or better cost controls.
Profitability Measures
Gross margin improved from 15.08% in 2020 to a peak of 20.38% in 2022, before declining to 17.54% in 2023 and partially recovering to 19.09% in 2024. Operating profit experienced a substantial turnaround from a loss of -3.34% in 2020 to positive values, stabilizing above 5% from 2021 onwards with a high of 8.10% in 2024, indicating enhanced operational efficiency. Net income attributable to common shareowners mirrored this trend, turning from a loss of -6.22% in 2020 to consistent profitability between 4.64% and 7.75% during subsequent years.
Expenses and Income Components
Research and development expenses as a percentage of net sales continuously declined from -4.56% in 2020 to -3.63% in 2024, possibly reflecting tighter R&D spending. Selling, general, and administrative expenses also declined from a high of -9.79% in 2020 to -7.19% in 2024, supporting improved operating margins. One-time goodwill impairment charges were recorded only in 2020, negatively affecting that year's results. Other income (expense), net decreased from positive territory in 2020 to a slight net expense of -0.16% by 2024, signaling diminishing non-operating gains.
Non-operating Effects
Non-service pension income generally declined over the period from 1.59% to 1.88%, showing some fluctuation. Debt extinguishment costs appeared only in 2021 at -1.01%. Interest expense declined slightly from -2.53% in 2020 to around -2.4% in later years, while interest income increased marginally, resulting in net interest expense improving from -2.41% to about -2.31%. Non-operating income (expense), net, fluctuated with a positive peak of 0.91% in 2022 but ended negatively at -0.43% in 2024.
Taxation and Net Results
Income tax expense fluctuated mildly, remaining in a range of approximately -0.66% to -1.46% of net sales. Income from continuing operations before taxes showed notable improvement from a loss in 2020 (-4.16%) to positive values exceeding 5.5% from 2021 onwards. Net income from continuing operations followed a similar pattern, moving from a loss of -5.17% in 2020 to a gain of 6.21% by 2024. Losses from discontinued operations were minimal and disappeared after 2022.
Minority Interests and Shareowners
Noncontrolling interest in subsidiaries’ earnings remained relatively stable, fluctuating slightly around -0.3% of net sales, with a slight tendency to increase in absolute terms. Overall, net income attributable to common shareowners improved markedly from a negative result in 2020 to sustained profitability in subsequent years, indicating an enhanced return to equity holders.