Gross Margin % is calculated as gross profit divided by its revenue. RTX's Gross Profit for the
three
months ended in Mar. 2024 was $3,561 Mil. RTX's Revenue for the
three
months ended in Mar. 2024 was $19,305 Mil. Therefore, RTX's Gross Margin % for the quarter that ended in Mar. 2024 was 18.45%.
Warning Sign:
RTX Corp gross margin has been in long-term decline. The average rate of decline per year is -3%.
The historical rank and industry rank for RTX's Gross Margin % or its related term are showing as below:
RTX'
s Gross Margin % Range Over the Past 10 Years
Min: 15.08 Med: 22.28 Max: 29.36
Current: 17.54
During the past 13 years, the highestGross Margin % of RTX was 29.36%. The lowest was 15.08%. And the median was 22.28%.
RTX's Gross Margin % is ranked worse than 69.36% of 297
companies
in the Aerospace & Defense industry
Industry Median: 26.36
vs RTX: 17.54
RTX had a gross margin of 18.45% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for RTX was -3.00% per year.
RTX Gross Margin % Historical Data
The historical data trend for RTX's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, RTX's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
RTX's Gross Margin % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, RTX's Gross Margin % distribution charts can be found below:
* The bar in red indicates where RTX's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
RTX (NYSE:RTX) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
RTX had a gross margin of 18.45% for the quarter that ended in Mar. 2024 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
RTX Gross Margin % Related Terms
Thank you for viewing the detailed overview of RTX's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
RTX is a diversified aerospace and defense industrial company formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to commercial aerospace manufacturers and to the defense market. The company operates in three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, an aircraft engine manufacturer; and Raytheon, a defense prime contractor providing a mix of missiles, missile defense systems, sensors, hardware, and communications technology to the military.
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