Raytheon Technologies Corp (RTX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 59,798,000 | 72,632,000 | 73,068,000 | 72,163,000 | 41,774,000 |
| ROE | 5.34% | 7.16% | 5.29% | -4.88% | 13.25% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $3,195,000K ÷ $59,798,000K
= 5.34%
RTX Corp's return on equity (ROE) has exhibited fluctuations over the past five years. In 2023, the ROE stands at 5.34%, a slight decrease from the previous year's 7.16%. The ROE in 2021 was 5.29%, relatively consistent with the current year. Notably, in 2020, the company reported a negative ROE of -4.88%, indicating potential financial distress or inefficiency. However, the company rebounded strongly in 2019 with an ROE of 13.25%.
Overall, RTX Corp's ROE has shown variability, with a mix of positive and negative returns in recent years. The company should assess the factors driving these fluctuations to enhance its profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2023