Raytheon Technologies Corp (RTX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 3,195,000 | 5,197,000 | 3,864,000 | -3,519,000 | 5,537,000 |
| Total assets | US$ in thousands | 161,869,000 | 158,864,000 | 161,404,000 | 162,153,000 | 139,615,000 |
| ROA | 1.97% | 3.27% | 2.39% | -2.17% | 3.97% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $3,195,000K ÷ $161,869,000K
= 1.97%
RTX Corp's return on assets (ROA) has exhibited fluctuating trends over the past five years. In 2023, the ROA decreased to 1.97% from 3.27% in the previous year. This decline indicates a reduction in the company's ability to generate profits from its assets. The 2023 ROA is below the 5-year average of 1.68%, highlighting a potential underperformance relative to the company's historical performance.
Comparing the 2023 ROA to previous years, it is significantly lower than the 2019 and 2021 ROA figures, which were 3.96% and 2.39%, respectively. This suggests a notable decrease in the company's profitability relative to those periods. However, the 2023 ROA is higher than the negative ROA reported in 2020, indicating a recovery from a period of asset inefficiency.
Overall, RTX Corp's ROA in 2023 reflects a diminished ability to generate returns from its assets compared to previous years. Further analysis of the company's asset utilization and profitability may be necessary to identify factors contributing to this decline and potential strategies for improvement.
Peer comparison
Dec 31, 2023