Raytheon Technologies Corp (RTX)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 7,817,000 | 7,576,000 | 4,233,000 | 5,267,000 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 60,156,000 | 61,114,000 | 58,985,000 | 60,485,000 | 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 |
| Return on total capital | 12.99% | 12.40% | 7.18% | 8.71% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 fluctuations over the period from March 31, 2020, to December 31, 2024. It began at 16.54% in March 2020, declined sharply to negative figures in the subsequent quarters, hitting a low of -2.19% in December 2020. However, there was a gradual improvement in the return on total capital starting from June 2021, which increased to 12.99% by December 2024.
The return on total capital figures indicate that the company has been able to generate positive returns on the capital invested in the business. The upward trend since June 2021 signifies an improvement in the company's profitability and capital utilization efficiency. However, the fluctuations in the figures suggest some level of volatility or challenges faced by the company during this period, impacting its ability to consistently generate returns for its shareholders.
Overall, the increasing trend in the return on total capital from June 2021 to December 2024 showcases the company's efforts to enhance its operational performance and efficiency in utilizing its total capital for generating profits.
Peer comparison
Dec 31, 2024