Raytheon Technologies Corp (RTX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,817,000 | 5,156,000 | 7,173,000 | 5,972,000 | -1,578,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 60,156,000 | 59,798,000 | 72,632,000 | 73,068,000 | 72,163,000 |
| Return on total capital | 12.99% | 8.62% | 9.88% | 8.17% | -2.19% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,817,000K ÷ ($—K + $60,156,000K)
= 12.99%
Raytheon Technologies Corp's return on total capital has shown a significant improvement from -2.19% in December 2020 to 12.99% in December 2024. This indicates a positive trend in the company's ability to generate profits relative to the total capital employed in its operations. The consistent increase in return on total capital over the years suggests that Raytheon Technologies Corp has been effectively utilizing its capital to generate returns for its shareholders. A high return on total capital implies that the company is efficiently using its resources to create value and generate profits. Overall, the upward trajectory of Raytheon Technologies Corp's return on total capital reflects a positive performance in terms of capital efficiency and profitability.
Peer comparison
Dec 31, 2024