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