Raytheon Technologies Corp (RTX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 60,156,000 | 59,798,000 | 72,632,000 | 73,068,000 | 72,163,000 |
| ROE | 7.94% | 5.34% | 7.16% | 5.29% | -4.88% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $4,774,000K ÷ $60,156,000K
= 7.94%
Raytheon Technologies Corp's return on equity (ROE) has shown variability over the past five years, ranging from -4.88% in December 2020 to 7.94% in December 2024. The negative ROE in December 2020 indicates that the company's net income was insufficient to generate a positive return for its shareholders. However, the subsequent years saw an improvement in ROE, reaching 5.29% in December 2021, 7.16% in December 2022, and 5.34% in December 2023.
The highest ROE of 7.94% in December 2024 suggests that Raytheon Technologies Corp has been able to effectively utilize its shareholders' equity to generate profits. This increasing trend in ROE over the years reflects positively on the company's financial performance and efficiency in generating returns for its shareholders. Overall, the company's improving ROE indicates a strengthened profitability and effective capital management strategy.
Peer comparison
Dec 31, 2024