Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
RTX Corp., consolidated balance sheet: assets
US$ in millions
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).
Over the analyzed period, total assets of the company exhibited a relatively stable trend, fluctuating slightly but maintaining an overall position around the 160,000 million US dollar mark. The total assets decreased from 162,153 million in 2020 to a low of 158,864 million in 2022 before rebounding to 162,861 million in 2024.
- Liquidity Position
- Cash and cash equivalents showed a declining trajectory, decreasing from 8,802 million in 2020 to 5,578 million in 2024, indicating a reduction in readily available liquid resources.
- Accounts receivable, net, displayed some volatility but overall increased, reaching 10,976 million in 2024 compared to 9,254 million in 2020. This suggests a rise in credit sales or extended collection periods.
- Contract assets consistently grew from 9,931 million to 14,570 million over the period, reflecting increasing unbilled revenue or work-in-progress related to contracts.
- Inventory, net, also increased steadily year over year, from 9,411 million to 12,768 million, which could signal growing stock levels possibly in anticipation of higher sales or due to slower inventory turnover.
- Other current assets showed significant fluctuations, dropping sharply from 5,978 million in 2020 to 4,018 million in 2021, then increasing to 7,241 million by 2024, indicating variability in other short-term resource components.
- The aggregate current assets remained relatively stable with slight growth, ending at 51,133 million in 2024 compared to 43,376 million in 2020, suggesting overall increased current asset holdings despite declines in cash.
- Long-Term Asset Composition
- Customer financing assets steadily decreased from 3,144 million to 2,246 million, indicating a reduction in financing extended to customers or changes in credit terms.
- Fixed assets, net, showed a gradual increase, from 14,962 million to 16,089 million, likely reflecting ongoing investments in property, plant, and equipment.
- Operating lease right-of-use assets varied, peaking in 2021 at 1,958 million before declining and then slightly recovering to 1,864 million in 2024, possibly corresponding to changes in lease arrangements.
- Goodwill slightly diminished, decreasing from 54,285 million in 2020 to 52,789 million in 2024, indicating either impairments or adjustments related to acquisitions.
- Intangible assets, net, consistently declined from 40,539 million to 33,443 million, reflecting amortization or impairment of intangible assets over time.
- Other long-term assets showed fluctuations with a peak in 2021 at 6,624 million but then declined and partially recovered to 5,297 million by 2024.
- The total long-term assets experienced a decrease from 118,777 million in 2020 to 111,728 million in 2024, indicating a gradual reduction in long-term investment base.
In summary, the company’s asset base remained generally steady with a modest shift in composition. Declines in cash resources were partially offset by increases in accounts receivable, contract assets, and inventory. Long-term assets showed a decline driven mainly by amortization of intangible assets and reductions in goodwill and customer financing assets, while fixed assets were incrementally increased. The overall trends may suggest shifts in operational focus and capital allocation, alongside evolving contract and financing structures.