Raytheon Technologies Corp (RTX)

Return on total capital

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 5,086,000 4,732,000 7,716,000 7,636,000 7,113,000 6,349,000 6,123,000 6,046,000 5,972,000 5,220,000 4,232,000 -1,022,000 -1,578,000 -368,000 722,000 6,518,000 7,804,000 6,747,000 6,806,000 7,525,000
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 59,798,000 69,596,000 72,480,000 72,795,000 72,632,000 70,187,000 70,441,000 72,462,000 73,068,000 71,308,000 71,115,000 71,710,000 72,163,000 68,379,000 67,225,000 39,411,000 41,774,000 40,468,000 40,754,000 39,738,000
Return on total capital 8.51% 6.80% 10.65% 10.49% 9.79% 9.05% 8.69% 8.34% 8.17% 7.32% 5.95% -1.43% -2.19% -0.54% 1.07% 16.54% 18.68% 16.67% 16.70% 18.94%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,086,000K ÷ ($—K + $59,798,000K)
= 8.51%

Based on the data provided, RTX Corp's return on total capital has displayed fluctuating trends over the past eight quarters. In Q4 2023, the return on total capital was 3.35%, which increased from the previous quarter at 2.93% in Q3 2023. However, compared to Q1 and Q2 of 2023, the return on total capital has declined.

Looking at the performance over the past two years, there has been a general upward trend in the return on total capital, starting at 4.50% in Q1 2022 and reaching a peak at 5.47% in Q2 2023. Despite the fluctuations, the company has managed to maintain a return on total capital above 4% consistently.

It is important for RTX Corp to continue monitoring and managing its capital efficiently to sustain or improve its return on total capital in the future. Additional analysis, such as comparing this ratio with industry benchmarks or the company's historical performance, would provide further insights into RTX Corp's financial performance and its ability to generate returns relative to the capital employed.


Peer comparison

Dec 31, 2023

Company name
Symbol
Return on total capital
Raytheon Technologies Corp
RTX
8.51%
Honeywell International Inc
HON
2.68%