Raytheon Technologies Corp (RTX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,774,000 | 3,195,000 | 5,197,000 | 3,864,000 | -3,519,000 |
| Total assets | US$ in thousands | 162,861,000 | 161,869,000 | 158,864,000 | 161,404,000 | 162,153,000 |
| ROA | 2.93% | 1.97% | 3.27% | 2.39% | -2.17% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $4,774,000K ÷ $162,861,000K
= 2.93%
Based on the data provided, Raytheon Technologies Corp's return on assets (ROA) has shown fluctuation over the years. In December 2020, the ROA was negative at -2.17%, indicating that the company was not efficiently utilizing its assets to generate profits. However, by December 2021, the ROA improved significantly to 2.39%, suggesting that the company's profitability relative to its assets had increased.
Subsequently, in December 2022, the ROA continued to rise to 3.27%, indicating further enhancement in the company's asset utilization and profitability. However, in December 2023, there was a slight decrease in ROA to 1.97%, which may indicate a potential decline in profitability relative to the company's assets.
Finally, by December 2024, the ROA showed improvement again, reaching 2.93%. Overall, the trend in Raytheon Technologies Corp's ROA demonstrates varying levels of efficiency in generating profits from its assets over the years, with notable improvements in some periods and minor setbacks in others. It will be important for the company to continue monitoring and optimizing its asset utilization to sustain and potentially improve its profitability in the future.
Peer comparison
Dec 31, 2024