RTX Corporation — Earnings Quality Grade F
RTX · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO increased by 11 days
AR growth 33.9% exceeds revenue growth 9.7%
Revenue 9.7%, CFFO 47.6%. Cash follows revenue
Expense Quality
Inventory 4.7% vs COGS 8.4%. Normal
CapEx growth -3.6% vs revenue 9.7%. Normal
SG&A/Gross Profit = 34.3%. Normal
Gross margin 20.1%, change +1.0pp. Stable
Cash Flow Quality
CFFO/NI = 1.57. Profits backed by cash
FCF $7.4B, FCF/NI = 1.11
Accruals ratio = -2.2%. Low accruals
Cash $7.4B covers only 19% of debt $39.5B
Balance Sheet Health
Goodwill+Intangibles $85.2B = 131% of equity. Over 50%
Debt/EBITDA = 2.6x. Healthy
Other assets -11.8% vs revenue 9.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.33 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09