Aureus
COkay

RTX Corporation(RTX)

C

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin8.4%Free Cash Flow / Revenue
Cash Conversion157.0%Operating CF / Net Income
Free Cash Flow$7.4B
Revenue$88.6B
Net Cash-$32.1BNet debt position
Debt / FCF5.3xElevated debt burden
Current Ratio1.03Adequate short-term liquidity
YoY FCF Growth+500.0%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-0.5Elevated debt-to-FCF ratio (5.3x)
→
+1Strong YoY FCF growth (500.0% YoY)
→
-0.5Highly volatile FCF (consistency: 1.04)
→
FinalC

Analysis Summary

Strengths

  • Excellent cash conversion (157%)
  • Strong YoY FCF growth (+500.0%)
  • FCF trend is improving

Concerns

  • Low FCF margin (8.4%)
  • Heavy debt position ($32.1B)
  • High debt-to-FCF ratio (5.3x)
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin8.4%
Net Margin7.6%
Operating CF Margin11.9%
CapEx Ratio3.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$32.1BNet debt position
Debt / FCF5.3xElevated debt burden
Current Ratio1.03Adequate liquidity
Debt / Equity0.61Low leverage

Quarterly FCF Trend

+500.0% YoYImproving (+500.0%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameRTX Corporation
SectorIndustrials
Free Cash Flow$7.4B
Revenue$88.6B
Net Income$6.7B
Operating Cash Flow$10.6B
Capital Expenditure$3.1B
FCF Margin8.4%
Cash Conversion Rate157.0%
Net Margin7.6%
Total Debt$39.5B
Total Cash$7.4B
Net Cash-$32.1B
Current Ratio1.03
Debt / Equity0.61
Debt / FCF5.3x
YoY FCF Growth+500.0%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeC
Data SourceYahoo Finance