Raytheon Technologies Corp (RTX)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 91.96% | 91.13% | 91.46% | 90.90% | 15.08% |
| Operating profit margin | 8.10% | 5.17% | 8.21% | 7.70% | -3.34% |
| Pretax margin | 7.38% | 5.30% | 8.79% | 7.22% | -5.20% |
| Net profit margin | 5.91% | 4.64% | 7.75% | 6.00% | -6.22% |
Raytheon Technologies Corp has shown a significant improvement in its profitability ratios over the five-year period from 2020 to 2024.
1. Gross Profit Margin: The company's gross profit margin has seen a remarkable increase from 15.08% in 2020 to 91.96% in 2024. This indicates that Raytheon Technologies has been able to effectively control its cost of goods sold while increasing its revenue, resulting in higher profitability at the gross level.
2. Operating Profit Margin: Raytheon Technologies improved its operating profit margin from a negative -3.34% in 2020 to 8.10% in 2024. This signifies the company's ability to manage its operating expenses more efficiently and generate higher profits from its core operations.
3. Pretax Margin: The pretax margin also demonstrates a positive trend, rising from -5.20% in 2020 to 7.38% in 2024. This indicates that Raytheon Technologies has improved its profitability before accounting for taxes, reflecting better overall financial performance.
4. Net Profit Margin: The company's net profit margin has increased from -6.22% in 2020 to 5.91% in 2024. This indicates that Raytheon Technologies has been able to enhance its bottom line profitability by controlling its non-operating expenses and taxes.
Overall, the improving trend in Raytheon Technologies Corp's profitability ratios over the years reflects the company's success in enhancing its operational efficiency and generating higher profits from its business activities.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.01% | 2.20% | 3.46% | 3.07% | -1.16% |
| Return on assets (ROA) | 2.93% | 1.97% | 3.27% | 2.39% | -2.17% |
| Return on total capital | 12.99% | 8.62% | 9.88% | 8.17% | -2.19% |
| Return on equity (ROE) | 7.94% | 5.34% | 7.16% | 5.29% | -4.88% |
Raytheon Technologies Corp's profitability ratios have shown a positive trend over the years based on the provided data. The Operating Return on Assets (Operating ROA) has increased from 3.07% in 2021 to 4.01% in 2024, indicating improved operational efficiency in generating profits from its assets.
Similarly, the Return on Assets (ROA) has also shown improvement, with a rise from 2.39% in 2021 to 2.93% in 2024. This implies that the company is becoming more effective in generating profits relative to its total assets.
The Return on Total Capital has displayed significant growth over the years, increasing from 8.17% in 2021 to 12.99% in 2024. This indicates that the company is efficiently utilizing both debt and equity to generate returns for its capital providers.
Lastly, the Return on Equity (ROE) has also shown a positive trend, increasing from 5.29% in 2021 to 7.94% in 2024. This shows that the company is delivering higher returns to its equity investors over time.
Overall, the profitability ratios reflect improving performance and efficiency in utilizing assets and capital to generate returns for Raytheon Technologies Corp.