RTX Corp. (RTX) 10-K Red Flags
Risk signals extracted deterministically from RTX Corp.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (17)
- Receivables outpacing revenue: Accounts receivable grew +33.9% YoY vs revenue growth of +9.7%. The +24.2% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- NEW: Going concern doubt in latest filing: The term "going concern" "substantial doubt" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- NEW: Substantial doubt about ability to continue in latest filing: The term "substantial doubt" "ability to continue" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
- Operating cash flow exceeds net income: OCF is 1.57x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +16.1% to $21.61B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- Goodwill is 30% of total assets: Goodwill of $52.93B represents a large share of the balance sheet. If acquired businesses underperform, a non-cash impairment charge could materially impact earnings. Monitor segment performance and acquisition integration metrics.
- Endogenous analysis: Revenue grew +9.7% but receivables grew +33.9% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 4 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 2 new risk-language term(s) detected in filing text: Going concern doubt, Substantial doubt about ability to continue.
- Market cap $296.98B at $220.35 per share.
- Trailing P/E 44.43, P/S 3.35, P/B 4.47.
- Composite risk: Moderate.
- Leverage debt/equity 0.62 (moderate).
- Receivables outpacing revenue: Accounts receivable grew +33.9% YoY vs revenue growth of +9.7%. The +24.2% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- NEW: Going concern doubt in latest filing: The term "going concern" "substantial doubt" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 1 filing(s).
Filings & ownership
- Latest annual report (10-K) filed Feb 6, 2026.
- Latest quarterly report (10-Q) filed Jul 23, 2026.
- 11 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
- ~3374 recent 13F-HR filings reference RTX Corp.; broad institutional reporting.
- Recent filers include VIMA LLC, VIMA LLC, SCP Investment, LP.
- 4 recent 13G passive institutional ownership notices.
Full RTX analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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