Stock Analysis on Net

RTX Corp. (NYSE:RTX)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

RTX Corp., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.73 0.44 0.43 0.44 1.04
Debt to equity (including operating lease liability) 0.76 0.47 0.46 0.47 1.11
Debt to capital 0.42 0.31 0.30 0.31 0.51
Debt to capital (including operating lease liability) 0.43 0.32 0.31 0.32 0.53
Debt to assets 0.27 0.20 0.20 0.20 0.31
Debt to assets (including operating lease liability) 0.28 0.21 0.21 0.21 0.33
Financial leverage 2.71 2.19 2.21 2.25 3.34
Coverage Ratios
Interest coverage 3.32 5.64 4.71 -0.65 5.65
Fixed charge coverage 2.81 4.40 3.66 -0.22 4.31

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. RTX Corp. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. RTX Corp. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. RTX Corp. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. RTX Corp. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. RTX Corp. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. RTX Corp. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. RTX Corp. financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. RTX Corp. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. RTX Corp. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Debt to Equity

RTX Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 189 625 134 247 2,364
Long-term debt currently due 1,283 595 24 550 3,496
Long-term debt, excluding currently due 42,355 30,694 31,327 31,026 37,788
Total debt 43,827 31,914 31,485 31,823 43,648
 
Shareowners’ equity 59,798 72,632 73,068 72,163 41,774
Solvency Ratio
Debt to equity1 0.73 0.44 0.43 0.44 1.04
Benchmarks
Debt to Equity, Competitors2
Boeing Co.
Caterpillar Inc. 1.94 2.33 2.29 2.42 2.58
Cummins Inc. 0.76 0.88 0.49 0.52 0.32
General Electric Co. 0.77 0.89 0.87 2.11 3.21
Honeywell International Inc. 1.29 1.17 1.06 1.28 0.87
Lockheed Martin Corp. 2.55 1.68 1.07 2.02 4.05
Debt to Equity, Sector
Capital Goods 1.65 1.40 1.30 1.81 2.19
Debt to Equity, Industry
Industrials 1.50 1.37 1.27 1.78 1.92

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).

1 2023 Calculation
Debt to equity = Total debt ÷ Shareowners’ equity
= 43,827 ÷ 59,798 = 0.73

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. RTX Corp. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

RTX Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 189 625 134 247 2,364
Long-term debt currently due 1,283 595 24 550 3,496
Long-term debt, excluding currently due 42,355 30,694 31,327 31,026 37,788
Total debt 43,827 31,914 31,485 31,823 43,648
Operating lease liabilities, current (included in Other accrued liabilities) 348 356 411 482 544
Operating lease liabilities, non-current 1,412 1,586 1,657 1,516 2,144
Total debt (including operating lease liability) 45,587 33,856 33,553 33,821 46,336
 
Shareowners’ equity 59,798 72,632 73,068 72,163 41,774
Solvency Ratio
Debt to equity (including operating lease liability)1 0.76 0.47 0.46 0.47 1.11
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Boeing Co.
Caterpillar Inc. 1.97 2.37 2.33 2.46 2.62
Cummins Inc. 0.81 0.93 0.54 0.57 0.38
General Electric Co. 0.84 0.96 0.94 2.20 3.32
Honeywell International Inc. 1.36 1.23 1.11 1.32 0.90
Lockheed Martin Corp. 2.73 1.81 1.19 2.21 4.40
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.72 1.46 1.36 1.88 2.29
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.68 1.53 1.42 1.94 2.03

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).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareowners’ equity
= 45,587 ÷ 59,798 = 0.76

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. RTX Corp. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Capital

RTX Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 189 625 134 247 2,364
Long-term debt currently due 1,283 595 24 550 3,496
Long-term debt, excluding currently due 42,355 30,694 31,327 31,026 37,788
Total debt 43,827 31,914 31,485 31,823 43,648
Shareowners’ equity 59,798 72,632 73,068 72,163 41,774
Total capital 103,625 104,546 104,553 103,986 85,422
Solvency Ratio
Debt to capital1 0.42 0.31 0.30 0.31 0.51
Benchmarks
Debt to Capital, Competitors2
Boeing Co. 1.49 1.39 1.35 1.40 1.46
Caterpillar Inc. 0.66 0.70 0.70 0.71 0.72
Cummins Inc. 0.43 0.47 0.33 0.34 0.24
General Electric Co. 0.43 0.47 0.47 0.68 0.76
Honeywell International Inc. 0.56 0.54 0.51 0.56 0.46
Lockheed Martin Corp. 0.72 0.63 0.52 0.67 0.80
Debt to Capital, Sector
Capital Goods 0.62 0.58 0.56 0.64 0.69
Debt to Capital, Industry
Industrials 0.60 0.58 0.56 0.64 0.66

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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 43,827 ÷ 103,625 = 0.42

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. RTX Corp. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

RTX Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 189 625 134 247 2,364
Long-term debt currently due 1,283 595 24 550 3,496
Long-term debt, excluding currently due 42,355 30,694 31,327 31,026 37,788
Total debt 43,827 31,914 31,485 31,823 43,648
Operating lease liabilities, current (included in Other accrued liabilities) 348 356 411 482 544
Operating lease liabilities, non-current 1,412 1,586 1,657 1,516 2,144
Total debt (including operating lease liability) 45,587 33,856 33,553 33,821 46,336
Shareowners’ equity 59,798 72,632 73,068 72,163 41,774
Total capital (including operating lease liability) 105,385 106,488 106,621 105,984 88,110
Solvency Ratio
Debt to capital (including operating lease liability)1 0.43 0.32 0.31 0.32 0.53
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Boeing Co. 1.47 1.37 1.34 1.39 1.43
Caterpillar Inc. 0.66 0.70 0.70 0.71 0.72
Cummins Inc. 0.45 0.48 0.35 0.36 0.28
General Electric Co. 0.46 0.49 0.49 0.69 0.77
Honeywell International Inc. 0.58 0.55 0.53 0.57 0.47
Lockheed Martin Corp. 0.73 0.64 0.54 0.69 0.81
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.63 0.59 0.58 0.65 0.70
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.63 0.60 0.59 0.66 0.67

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).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 45,587 ÷ 105,385 = 0.43

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. RTX Corp. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets

RTX Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 189 625 134 247 2,364
Long-term debt currently due 1,283 595 24 550 3,496
Long-term debt, excluding currently due 42,355 30,694 31,327 31,026 37,788
Total debt 43,827 31,914 31,485 31,823 43,648
 
Total assets 161,869 158,864 161,404 162,153 139,716
Solvency Ratio
Debt to assets1 0.27 0.20 0.20 0.20 0.31
Benchmarks
Debt to Assets, Competitors2
Boeing Co. 0.38 0.42 0.42 0.42 0.20
Caterpillar Inc. 0.43 0.45 0.46 0.47 0.48
Cummins Inc. 0.21 0.26 0.18 0.18 0.12
General Electric Co. 0.13 0.17 0.18 0.30 0.34
Honeywell International Inc. 0.33 0.31 0.30 0.35 0.27
Lockheed Martin Corp. 0.33 0.29 0.23 0.24 0.27
Debt to Assets, Sector
Capital Goods 0.29 0.28 0.27 0.31 0.31
Debt to Assets, Industry
Industrials 0.30 0.29 0.29 0.32 0.32

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).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 43,827 ÷ 161,869 = 0.27

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. RTX Corp. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

RTX Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Short-term borrowings 189 625 134 247 2,364
Long-term debt currently due 1,283 595 24 550 3,496
Long-term debt, excluding currently due 42,355 30,694 31,327 31,026 37,788
Total debt 43,827 31,914 31,485 31,823 43,648
Operating lease liabilities, current (included in Other accrued liabilities) 348 356 411 482 544
Operating lease liabilities, non-current 1,412 1,586 1,657 1,516 2,144
Total debt (including operating lease liability) 45,587 33,856 33,553 33,821 46,336
 
Total assets 161,869 158,864 161,404 162,153 139,716
Solvency Ratio
Debt to assets (including operating lease liability)1 0.28 0.21 0.21 0.21 0.33
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Boeing Co. 0.40 0.43 0.43 0.43 0.21
Caterpillar Inc. 0.44 0.46 0.46 0.48 0.49
Cummins Inc. 0.23 0.28 0.19 0.20 0.15
General Electric Co. 0.14 0.19 0.19 0.31 0.35
Honeywell International Inc. 0.35 0.33 0.32 0.36 0.28
Lockheed Martin Corp. 0.36 0.32 0.26 0.26 0.29
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.30 0.30 0.29 0.33 0.32
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.33 0.33 0.32 0.35 0.34

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).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 45,587 ÷ 161,869 = 0.28

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. RTX Corp. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

RTX Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Benchmarks
Financial Leverage, Competitors2
Boeing Co.
Caterpillar Inc. 4.49 5.16 5.02 5.11 5.38
Cummins Inc. 3.62 3.38 2.80 2.81 2.63
General Electric Co. 5.96 5.16 4.93 7.13 9.40
Honeywell International Inc. 3.88 3.73 3.47 3.68 3.17
Lockheed Martin Corp. 7.67 5.71 4.64 8.43 15.20
Financial Leverage, Sector
Capital Goods 5.75 4.94 4.71 5.75 7.07
Financial Leverage, Industry
Industrials 5.04 4.64 4.43 5.50 5.99

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).

1 2023 Calculation
Financial leverage = Total assets ÷ Shareowners’ equity
= 161,869 ÷ 59,798 = 2.71

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. RTX Corp. financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Interest Coverage

RTX Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,195 5,197 3,864 (3,519) 5,537
Add: Net income attributable to noncontrolling interest 185 111 248 224 411
Less: Loss from discontinued operations (19) (33) (367)
Add: Income tax expense 456 700 786 575 2,295
Add: Interest expense 1,653 1,300 1,330 1,430 1,773
Earnings before interest and tax (EBIT) 5,489 7,327 6,261 (923) 10,016
Solvency Ratio
Interest coverage1 3.32 5.64 4.71 -0.65 5.65
Benchmarks
Interest Coverage, Competitors2
Boeing Co. 0.18 -0.98 -0.88 -5.71 -2.19
Caterpillar Inc. 26.66 20.80 17.88 8.80 19.62
Cummins Inc. 5.34 15.17 25.78 24.38 27.00
General Electric Co. 10.12 1.88 -0.96 2.59 1.27
Honeywell International Inc. 10.36 16.41 22.09 17.75 22.17
Lockheed Martin Corp. 9.84 11.72 14.27 14.93 12.09
Interest Coverage, Sector
Capital Goods 6.39 4.80 3.97 2.06 4.94
Interest Coverage, Industry
Industrials 6.92 5.50 6.00 2.09 4.43

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).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,489 ÷ 1,653 = 3.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. RTX Corp. interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Fixed Charge Coverage

RTX Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,195 5,197 3,864 (3,519) 5,537
Add: Net income attributable to noncontrolling interest 185 111 248 224 411
Less: Loss from discontinued operations (19) (33) (367)
Add: Income tax expense 456 700 786 575 2,295
Add: Interest expense 1,653 1,300 1,330 1,430 1,773
Earnings before interest and tax (EBIT) 5,489 7,327 6,261 (923) 10,016
Add: Operating lease expense 463 475 525 497 720
Earnings before fixed charges and tax 5,952 7,802 6,786 (426) 10,736
 
Interest expense 1,653 1,300 1,330 1,430 1,773
Operating lease expense 463 475 525 497 720
Fixed charges 2,116 1,775 1,855 1,927 2,493
Solvency Ratio
Fixed charge coverage1 2.81 4.40 3.66 -0.22 4.31
Benchmarks
Fixed Charge Coverage, Competitors2
Boeing Co. 0.31 -0.70 -0.64 -4.75 -1.19
Caterpillar Inc. 19.73 14.92 12.73 6.58 13.01
Cummins Inc. 4.01 8.85 10.72 9.60 9.94
General Electric Co. 5.25 1.35 -0.22 1.93 1.09
Honeywell International Inc. 8.13 11.00 13.67 11.49 14.06
Lockheed Martin Corp. 7.81 8.44 9.95 11.12 9.12
Fixed Charge Coverage, Sector
Capital Goods 4.86 3.60 3.05 1.71 3.67
Fixed Charge Coverage, Industry
Industrials 4.47 3.57 3.93 1.63 2.98

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).

1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 5,952 ÷ 2,116 = 2.81

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. RTX Corp. fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.