RTX Corp. (NYSE:RTX)

The Price to Operating Profit (P/OP) ratio for the analyzed period exhibits considerable fluctuation. Initially, the ratio demonstrates relative stability between 2006 and 2008, followed by a significant decline in 2009, and then a period of moderate variation before increasing substantially in later years.

Initial Stability & 2009 Decline

From 2006 to 2008, the P/OP ratio remained relatively consistent, fluctuating between approximately 9.95 and 11.11. A sharp decrease is then observed in 2009, with the ratio falling to 5.88. This decline coincides with a period where the share price decreased substantially while operating profit per share remained relatively high, suggesting a significant negative market reaction or broader economic conditions impacting valuation.

Moderate Variation (2010-2015)

Following the 2009 drop, the P/OP ratio experienced a period of moderate fluctuation between approximately 9.67 and 12.16 from 2010 through 2015. While not consistently trending upwards or downwards, the ratio generally remained within a narrower range than observed in the earlier and later parts of the analyzed timeframe. Both share price and operating profit per share contributed to this relative stability.

Increasing Trend & Recent Peaks

From 2016 onwards, the P/OP ratio demonstrates a clear upward trend, punctuated by a substantial drop in 2021. The ratio increased from 9.71 in 2016 to 15.07 in 2019. A significant decline occurred in 2021, with the ratio reaching 28.68, likely due to the negative operating profit per share experienced that year. Subsequently, the ratio peaked at 34.37 in 2023 before decreasing to 28.67 in 2025. This recent increase suggests a growing investor confidence in the company’s ability to generate profits relative to its share price, although the 2021 outlier and subsequent fluctuations indicate volatility.

Overall, the P/OP ratio demonstrates a dynamic relationship between share price and operating profit per share. The period is characterized by initial stability, a pronounced decline during 2009, a period of moderate variation, and a recent trend of increasing valuation followed by volatility. The substantial fluctuations, particularly in 2009 and 2021, warrant further investigation into the underlying factors driving these changes.