RTX Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to common shareowners	3,195)	5,197)	3,864)	(3,519)	5,537)
Noncontrolling interest in subsidiaries’ earnings	185)	111)	248)	224)	411)
Net noncash charges	2,988)	1,338)	3,308)	6,818)	3,166)
Change in operating capital	1,515)	522)	(278)	811)	(231)
Net cash flows provided by operating activities	7,883)	7,168)	7,142)	4,334)	8,883)
Interest paid, net of amounts capitalized, net of tax¹	1,290)	1,116)	1,126)	1,286)	1,300)
Capital expenditures	(2,415)	(2,288)	(2,134)	(1,795)	(2,256)
Free cash flow to the firm (FCFF)	6,758)	5,996)	6,134)	3,825)	7,927)

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 See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the RTX Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	RTX Corp. FCFF decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

RTX Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	11.90%	11.60%	15.90%	21.00%	27.80%
Interest Paid, Net of Tax
Interest paid, net of amounts capitalized, before tax	1,464)	1,263)	1,339)	1,628)	1,801)
Less: Interest paid, net of amounts capitalized, tax²	174)	147)	213)	342)	501)
Interest paid, net of amounts capitalized, net of tax	1,290)	1,116)	1,126)	1,286)	1,300)

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 See details »

² 2023 Calculation
Interest paid, net of amounts capitalized, tax = Interest paid, net of amounts capitalized × EITR
= 1,464 × 11.90% = 174

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RTX Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	172,530)
Free cash flow to the firm (FCFF)	6,758)
Valuation Ratio
EV/FCFF	25.53
Benchmarks
EV/FCFF, Competitors¹
Boeing Co.	21.76
Caterpillar Inc.	17.60
Cummins Inc.	15.77
Eaton Corp. plc	41.16
General Electric Co.	33.72
Honeywell International Inc.	28.22
Lockheed Martin Corp.	18.19
EV/FCFF, Sector
Capital Goods	23.57
EV/FCFF, Industry
Industrials	25.17

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

RTX Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	161,239)	170,615)	167,423)	134,857)	173,888)
Free cash flow to the firm (FCFF)²	6,758)	5,996)	6,134)	3,825)	7,927)
Valuation Ratio
EV/FCFF³	23.86	28.45	27.29	35.26	21.94
Benchmarks
EV/FCFF, Competitors⁴
Boeing Co.	25.63	37.53	—	—	—
Caterpillar Inc.	16.08	23.54	20.50	23.83	16.84
Cummins Inc.	14.10	35.58	21.11	16.67	10.35
Eaton Corp. plc	38.49	33.44	38.16	21.94	15.50
General Electric Co.	29.56	17.29	56.53	32.34	15.85
Honeywell International Inc.	29.13	29.82	25.22	26.49	21.13
Lockheed Martin Corp.	17.62	19.69	13.92	14.64	21.21
EV/FCFF, Sector
Capital Goods	22.77	26.17	31.55	66.05	23.83
EV/FCFF, Industry
Industrials	25.15	25.09	28.18	65.99	30.06

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 161,239 ÷ 6,758 = 23.86

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	RTX Corp. EV/FCFF ratio increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

RTX Corp. (NYSE:RTX)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical