Raytheon Technologies Corp (RTX)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,581,000 | 3,397,000 | 6,439,000 | 6,363,000 | 5,837,000 | 5,115,000 | 4,842,000 | 4,752,000 | 4,650,000 | 3,825,000 | 2,845,000 | -2,402,000 | -2,944,000 | -1,802,000 | -764,000 | 5,015,000 | 6,202,000 | 5,251,000 | 5,454,000 | 6,291,000 |
| Revenue (ttm) | US$ in thousands | 68,920,000 | 67,086,000 | 70,573,000 | 68,572,000 | 67,074,000 | 66,025,000 | 65,287,000 | 64,853,000 | 64,388,000 | 63,763,000 | 62,297,000 | 60,478,000 | 56,587,000 | 51,862,000 | 48,488,000 | 45,756,000 | 45,349,000 | 51,699,000 | 56,836,000 | 62,212,000 |
| Pretax margin | 5.20% | 5.06% | 9.12% | 9.28% | 8.70% | 7.75% | 7.42% | 7.33% | 7.22% | 6.00% | 4.57% | -3.97% | -5.20% | -3.47% | -1.58% | 10.96% | 13.68% | 10.16% | 9.60% | 10.11% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,581,000K ÷ $68,920,000K
= 5.20%
The pretax margin of RTX Corp has shown some fluctuation over the past eight quarters. In Q4 2023, the pretax margin was 5.57%, which increased slightly from 5.49% in Q3 2023. Despite this slight improvement, the current pretax margin is lower compared to the levels seen in the first half of 2023, where it reached 9.41% in Q2 and 9.58% in Q1.
Looking back further, we see that the pretax margin performance in Q4 2023 is in line with Q4 2022, where it stood at 8.99%. It is also worth noting that the second half of 2022 showed a consistent improvement in pretax margin compared to the first half of 2022 when it ranged between 7.73% and 7.94%.
In summary, RTX Corp's pretax margin has displayed variability in recent quarters, with Q4 2023 showing a moderate increase compared to the previous quarter but lagging behind the peak levels seen earlier in the year. The company may need to focus on maintaining or improving profitability to ensure sustained financial health and performance.
Peer comparison
Dec 31, 2023