RTX Corp. (NYSE:RTX)

Return on Assets (ROA)

The return on assets exhibited a negative trend in the early periods, reaching its lowest point at -2.17% in one quarter of 2020 and improving to positive territory by mid-2020. From that point onward, ROA demonstrated a consistent upward movement, peaking around 3.43% in late 2021. Although there was a slight dip to approximately 1.4% at one point in 2024, the metric generally rebounded to reach its highest values near 3.9% by early 2025. This pattern indicates a recovery after initial losses and a steady improvement in asset profitability over the observed timeframe.

Financial Leverage

Financial leverage showed a declining trend from early 2020, starting above 3.5 and decreasing steadily to about 2.2 by the end of 2021. The ratio then stabilized with minor fluctuations around the range of 2.2 to 2.7 throughout subsequent periods until 2025. This suggests a reduction in the extent of debt financing relative to equity in the initial phase, followed by a period of relative stability in leverage levels.

Return on Equity (ROE)

The return on equity started with negative values in 2020, reaching approximately -4.9%, followed by a marked improvement that brought the metric into positive figures by mid-2020. Thereafter, ROE exhibited a generally upward trend, reaching peaks above 7% in late 2021 and surpassing 10% by early 2025. The progression includes some short-term declines, notably around 2024 when ROE fell to about 3.8%, but these were followed by recoveries. The overall trend reflects increasing profitability for shareholders over time, aligned with improving returns on assets and stable leverage.

The analysis of the quarterly financial metrics reveals several notable trends in profitability, efficiency, leverage, and overall return to equity holders over the observed periods.

Net Profit Margin

The net profit margin exhibited a challenging position at the start of the timeline, with negative values reaching -6.22% and -4.44%. There was a clear recovery trend beginning in March 2021, where the margin turned positive and proceeded to steadily improve, reaching a peak of 8.08% in June 2023. Following this peak, the margin experienced some fluctuations but generally maintained positive values, ultimately returning to a high of 7.67% by the last reported quarter in September 2025. This improvement suggests enhanced operational efficiency and cost management over the years.

Asset Turnover

Asset turnover ratios started at 0.35 in March 2021 and demonstrated consistent growth over the timeframe. The ratio gradually increased almost every quarter, reaching 0.51 by September 2025. This steady rise indicates that the company has become more effective at generating sales from its asset base, reflecting better utilization of assets or growth in sales relative to asset growth.

Financial Leverage

Financial leverage decreased significantly from 3.54 at the start of the available data in March 2020 to a more stable range around 2.2 through 2022. However, from late 2023 onwards, leverage ratios rose again, peaking near 2.73 by September 2024 before moderating slightly to 2.61 in the final quarter. This pattern points to a reduction in the reliance on debt relative to equity over the early and middle periods, followed by a moderate increase in leverage in later years, possibly to finance growth or investment opportunities.

Return on Equity (ROE)

The ROE exhibited an initial negative trend in 2020, aligning with the negative net profit margins, with values near -4.88% and -3.74%. Consistent with the recovery in profitability, ROE turned positive from March 2021 onwards and showed a persistent upward trend, achieving double-digit figures of 9.85% and 10.22% by the last two quarters. This improvement in ROE indicates enhanced profitability relative to shareholders’ equity and reflects positively on the company’s ability to generate value for investors over time.

Overall, the data indicate a progression from periods of negative profitability to consistent and improving income generation metrics. Efficiency, as measured by asset turnover, has strengthened concurrently, while financial leverage has been managed to moderate levels, rising modestly in recent quarters. The combination of improved profit margins, increased asset efficiency, controlled leverage, and rising returns to equity holders suggests positive operational and financial management trends over the reported quarters.

Net Profit Margin

The net profit margin displayed a negative performance in early 2020, with a marked low of -6.22% in December 2020. Starting from the first quarter of 2021, the margin improved significantly, turning positive at 3.51%, and continued a generally upward trajectory reaching a peak of 8.08% in the second quarter of 2023. Following this peak, the margin exhibited some volatility with a decline to 4.64% by the fourth quarter of 2023. Subsequently, it rebounded, fluctuating around 5-7% and peaking again at 7.67% by the third quarter of 2025. Overall, the trend suggests a recovery and strengthening profitability after the negative margins experienced in 2020.

Asset Turnover

The asset turnover ratio became available starting from March 2021 at 0.35, indicating the efficiency in using assets to generate sales. From that point forward, it showed a consistent and gradual increase, rising from 0.35 to 0.51 by the third quarter of 2025. This steady improvement reflects enhanced asset efficiency, suggesting either more effective asset utilization or improved sales generation relative to assets over the observed periods.

Return on Assets (ROA)

The ROA was initially negative in 2020, with a low point of -2.17% at the end of that year. Beginning in 2021, there was a recovery from -1.67% to positive performance, reaching 3.43% in the second quarter of 2023. Following this, ROA dropped sharply to around 1.4% in the third quarter of 2024 but then showed positive recovery toward the end of the observed timeframe, achieving 3.91% by the third quarter of 2025. This pattern reflects a gradual improvement in asset profitability, albeit with some intermediate fluctuations.