Raytheon Technologies Corp (RTX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,538,000 | 3,561,000 | 5,504,000 | 4,958,000 | -1,889,000 |
| Total assets | US$ in thousands | 162,861,000 | 161,869,000 | 158,864,000 | 161,404,000 | 162,153,000 |
| Operating ROA | 4.01% | 2.20% | 3.46% | 3.07% | -1.16% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $6,538,000K ÷ $162,861,000K
= 4.01%
Raytheon Technologies Corp's operating return on assets (ROA) has fluctuated over the years. In December 2020, the operating ROA was negative at -1.16%, indicating the company was not efficiently utilizing its assets to generate operating profits. However, there has been a notable improvement in subsequent years.
By December 2021, the operating ROA increased to 3.07%, suggesting that the company's operational performance improved, generating a positive return on its assets. This positive trend continued into December 2022 with an operating ROA of 3.46%. The company managed to further enhance its efficiency in utilizing assets to generate operating income.
In the following years, there was a slight dip in the operating ROA. In December 2023, the operating ROA decreased to 2.20%, indicating a temporary slowdown in operational efficiency. However, Raytheon Technologies Corp rebounded strongly in December 2024, with the operating ROA rising to 4.01%. This improvement suggests that the company successfully boosted its operating profitability relative to its asset base.
Overall, the trend in Raytheon Technologies Corp's operating ROA indicates a mixed performance, with some fluctuations over the years. However, the company has shown the ability to enhance its operational efficiency and generate positive returns on its assets, which is a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024