RTX (BUE:RTX) Beneish M-Score : -2.60 (As of Apr. 26, 2024)

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What is RTX Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for RTX's Beneish M-Score or its related term are showing as below:

BUE:RTX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9 Med: -2.48 Max: -1.28
Current: -2.6

During the past 13 years, the highest Beneish M-Score of RTX was -1.28. The lowest was -2.90. And the median was -2.48.

RTX Beneish M-Score Historical Data

The historical data trend for RTX's Beneish M-Score 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.

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RTX Beneish M-Score Chart

RTX Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.90

-1.69

-2.50

-2.62

-2.51

RTX Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.41	-2.45	-2.49	-2.51	-2.60

Competitive Comparison of RTX's Beneish M-Score

For the Aerospace & Defense subindustry, RTX's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, RTX's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where RTX's Beneish M-Score falls into.

RTX Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of RTX for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.4443

0.528 * 1.19

0.404 * 0.9658

0.892 * 3.0287

0.115 * 1.3965

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1644

4.679 * -0.008793

0.327 * 1.2027

-0.27

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was ARS19,701,020 Mil.
Revenue was 16264462.776 + 7193647.006 + 4711726.93 + 4395599.965 = ARS32,565,437 Mil.
Gross Profit was 3000142.551 + 1447249.001 + 249864.307 + 911279.993 = ARS5,608,536 Mil.
Total Current Assets was ARS40,459,378 Mil.
Total Assets was ARS134,957,550 Mil.
Property, Plant and Equipment(Net PPE) was ARS14,555,873 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,900,913 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,610,985 Mil.
Total Current Liabilities was ARS37,928,508 Mil.
Long-Term Debt & Capital Lease Obligation was ARS36,854,321 Mil.
Net Income was 1439832.524 + 514786 + -344350.809 + 318479.997 = ARS1,928,748 Mil.
Non Operating Income was 3370 + -478325 + 156077.704 + 112559.999 = ARS-206,317 Mil.
Cash Flow from Operations was 288135.005 + 1700671.002 + 1160434.232 + 172559.999 = ARS3,321,800 Mil.

Total Receivables was ARS4,503,745 Mil.
Revenue was 3400625.779 + 3033291.366 + 2355341.415 + 1963063.647 = ARS10,752,322 Mil.
Gross Profit was 705055.966 + 598007.533 + 484518.643 + 416101.146 = ARS2,203,683 Mil.
Total Current Assets was ARS8,989,315 Mil.
Total Assets was ARS31,931,193 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,356,967 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS645,654 Mil.
Selling, General, & Admin. Expense(SGA) was ARS456,795 Mil.
Total Current Liabilities was ARS7,927,287 Mil.
Long-Term Debt & Capital Lease Obligation was ARS6,784,065 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(19701020.335 / 32565436.677)	/	(4503745.005 / 10752322.207)
	=	0.604967	/	0.418863
	=	1.4443

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(2203683.288 / 10752322.207)	/	(5608535.852 / 32565436.677)
	=	0.20495	/	0.172224
	=	1.19

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (40459378.188 + 14555872.747) / 134957549.794)	/	(1 - (8989315.409 + 3356967.228) / 31931192.543)
	=	0.592351	/	0.613347
	=	0.9658

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	32565436.677	/	10752322.207
	=	3.0287

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(645654.22 / (645654.22 + 3356967.228))	/	(1900912.823 / (1900912.823 + 14555872.747))
	=	0.161308	/	0.115509
	=	1.3965

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(1610984.975 / 32565436.677)	/	(456794.825 / 10752322.207)
	=	0.049469	/	0.042483
	=	1.1644

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((36854320.627 + 37928508.145) / 134957549.794)	/	((6784064.708 + 7927286.585) / 31931192.543)
	=	0.554121	/	0.46072
	=	1.2027

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(1928747.712 - -206317.297	-	3321800.238)	/	134957549.794
	=	-0.008793

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

RTX has a M-score of -0.27 signals that the company is likely to be a manipulator.

RTX Beneish M-Score Related Terms

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RTX (BUE:RTX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » RTX Corp (BUE:RTX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RTX:USA RTX:Mexico 5URd:UK 0R2N:UK 5UR:Germany RTX:Canada RYTT34:Brazil RTX:Austria

Address

1000 Wilson Boulevard, Arlington, VA, USA, 22209

Website

https://www.rtx.com

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.