Is the business good?
How good a business is RTX?
RTX Corporation earns 8.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.7%
Return on invested capital · cost of capital 9.0% · 0.26 points below what the capital costs: growth destroys value
- Operating margin
- 11%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 1.47×
Cash conversion · 0.52× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +0.81%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −3.3% |
| FY2021 | 8.0% |
| FY2022 | 8.2% |
| FY2023 | 5.2% |
| FY2024 | 8.1% |
| FY2025 | 11% |
Details›
- Operating margin12 months to Q2 2026
- 11%
- Net margin12 months to Q2 2026
- 8.3%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 3.0%
- Revenue, trailing twelve months
- $93.5B
- Free cash flow, trailing twelve months
- $11.4B
- Net income, trailing twelve months
- $7.74B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #16 of 48 by Smart Score