Stock Analysis on Net
Stock Analysis on Net

Raytheon Co. (NYSE:RTN)

This company has been moved to the archive! The financial data has not been updated since February 12, 2020.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Raytheon Co., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Commercial paper and current portion of long-term debt 4.34 0.94 0.97 0.00 0.00
Contract liabilities 9.45 10.38 9.48 7.45 7.49
Accounts payable 5.20 6.16 4.92 5.06 4.79
Accrued employee compensation 5.25 4.74 4.35 4.11 3.94
Other current liabilities 4.10 3.78 4.08 4.77 4.70
Current liabilities 28.33% 26.01% 23.81% 21.39% 20.92%
Accrued retiree benefits and other long-term liabilities 24.74 21.77 26.85 25.87 24.38
Long-term debt, excluding current portion 9.43 14.92 15.39 17.75 18.20
Operating lease liabilities, noncurrent 2.04 0.00 0.00 0.00 0.00
Long-term liabilities 36.22% 36.70% 42.25% 43.62% 42.59%
Total liabilities 64.55% 62.71% 66.06% 65.01% 63.51%
Redeemable noncontrolling interests 0.09 1.29 1.66 1.49 1.21
Common stock, par value, $0.01 per share 0.01 0.01 0.01 0.01 0.01
Additional paid-in capital 0.00 0.00 0.00 0.00 1.36
Accumulated other comprehensive loss -26.79 -27.05 -25.71 -24.66 -24.51
Retained earnings 62.14 63.04 57.99 58.15 57.73
Total Raytheon Company stockholders’ equity 35.36% 36.00% 32.28% 33.50% 34.59%
Noncontrolling interests in subsidiaries 0.00 0.00 0.00 0.00 0.69
Total equity 35.36% 36.00% 32.28% 33.50% 35.28%
Total liabilities, redeemable noncontrolling interests and equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The capital structure exhibits a consistent reliance on liabilities, which maintained a relatively stable proportion of the total balance sheet, fluctuating between 62.71% and 66.06% from 2015 to 2019. While the overall leverage ratio remained steady, there was a notable internal migration of obligations from long-term to short-term classifications.

Current Liabilities Trends
A steady upward trend in current liabilities is observed, rising from 20.92% in 2015 to 28.33% in 2019. This increase is driven primarily by a sharp rise in commercial paper and the current portion of long-term debt, which climbed to 4.34% in 2019 after remaining below 1% in previous years. Contract liabilities remained a significant component, peaking at 10.38% in 2018, while accrued employee compensation showed a gradual increase from 3.94% to 5.25% over the five-year period.
Long-term Liabilities Analysis
Long-term liabilities experienced a general decline, decreasing from 42.59% in 2015 to 36.22% in 2019. The most significant contributor to this reduction was long-term debt (excluding the current portion), which fell substantially from 18.20% in 2015 to 9.43% in 2019. Accrued retiree benefits and other long-term liabilities remained a dominant fixture of the long-term profile, though they fluctuated between 21.77% and 26.85%.
Stockholders' Equity Composition
Total equity fluctuated within a narrow range, starting at 35.28% in 2015 and ending at 35.36% in 2019. This stability masks significant internal offsets. Retained earnings grew steadily from 57.73% in 2015 to 62.14% in 2019, indicating strong cumulative profitability. However, these gains were consistently tempered by a substantial accumulated other comprehensive loss, which widened from -24.51% in 2015 to -26.79% in 2019.
Overall Financing Shift
The transition from long-term debt to current liabilities suggests a strategic shift in financing or a change in the maturity profile of the company's debt obligations. The reduction in long-term debt, coupled with the emergence of higher commercial paper usage in 2019, indicates an increased reliance on short-term funding mechanisms toward the end of the period analyzed.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?