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

Company name
Symbol
Pretax margin
Raytheon Technologies Corp
RTX
5.20%
Honeywell International Inc
HON
19.50%