Raytheon Co. (NYSE:RTN)

The financial data over the five-year period shows a consistent upward trend in both current assets and adjusted current assets, indicating steady growth in the company's short-term resources.

Current Assets

The value of current assets increased each year from US$9,812 million in 2015 to US$13,082 million in 2019. This growth suggests an improvement in liquidity and the company's ability to cover short-term obligations. The yearly increments are relatively stable, demonstrating consistent asset accumulation or effective working capital management.

Adjusted Current Assets

Adjusted current assets closely mirror the trend in current assets, starting at US$9,817 million in 2015 and rising to US$13,089 million in 2019. The negligible difference between the adjusted and reported current assets implies that adjustments have little impact on the overall liquidity position.

The analysis of the annual financial data over the five-year period reveals a consistent upward trend in both total assets and adjusted total assets. Specifically, total assets increased from 29,281 million US dollars in 2015 to 34,566 million US dollars in 2019. This represents a steady growth trajectory, with assets rising each year without any decline or stagnation.

Similarly, adjusted total assets exhibit a comparable pattern, increasing from 29,356 million US dollars in 2015 to 34,039 million US dollars by the end of 2019. The adjusted total assets are consistently slightly higher than the reported total assets from 2016 onwards, indicating possible adjustments for items such as revaluations or intangible assets that are factored into the adjusted figures.

The annual increments in total assets average close to 1,200 million dollars per year, showing stable asset expansion. This steady increase suggests ongoing investments, asset acquisitions, or organic growth contributing positively to the asset base. There is no indication of volatility or impairment within the presented period.

Overall, the data indicates a solid and continuous growth in the asset base, reflective of potentially expanding operations or improved asset management strategies during these years.

Over the five-year period ending December 31, 2019, total liabilities exhibited a general upward trend. Starting from 18,596 million US dollars at the end of 2015, total liabilities increased each year, reaching 22,311 million US dollars by the end of 2019. The growth was somewhat steady with a slight deceleration observed in 2018, where total liabilities decreased marginally from the previous year before rising again in 2019.

Adjusted total liabilities, which likely account for certain adjustments or reclassifications, mirrored the trend observed in total liabilities. Beginning at 19,572 million US dollars in 2015, this measure rose consistently through the years, reaching its highest level of 22,311 million US dollars in 2019. This steady increase indicates that the adjustments did not significantly alter the underlying upward liability trend.

Total Liabilities

Increased overall by approximately 20% from 2015 to 2019.

The year 2018 saw a minor decrease compared to 2017, suggesting a temporary reduction in liabilities that was not sustained into the following year.

Adjusted Total Liabilities

Consistently higher than reported total liabilities up to 2018, though converging to the same figure by 2019.

Reflects underlying liabilities including certain adjustments, confirming the steady growth trajectory of the company's liabilities during the period analyzed.

The analysis of the provided financial data reveals distinct trends in equity figures over the five-year period from 2015 to 2019.

Total stockholders’ equity

This metric exhibits minor fluctuations within the initial three years, showing a slight decline from 10,128 million US dollars in 2015 to 9,963 million US dollars in 2017. Subsequently, the value increases notably in 2018 and 2019, reaching 11,472 million and 12,223 million US dollars respectively. Overall, although the equity level dipped modestly in the mid-period, there is a clear upward trend by the end of the timeframe.

Adjusted total equity

Adjusted total equity follows a similar pattern to total stockholders' equity but with marginally different values. It decreases slightly from 9,803 million US dollars in 2015 to 9,777 million in 2016, then experiences a modest increase to 9,951 million in 2017. A more pronounced rise is observed in 2018, where adjusted equity reaches 11,566 million US dollars, followed by a slight decrease to 11,749 million in 2019. Despite this small dip at the end, the overall trend is an increase, which indicates growing adjusted equity over time.

In summary, both total stockholders' equity and adjusted total equity demonstrate relative stability initially, with modest decreases in the earlier years, followed by substantial increases toward the end of the period. This progression suggests an improvement in the company's equity position, reflecting potentially enhanced financial strength or successful capital management during the latter part of the reporting horizon.

Total reported debt

The total reported debt remained relatively stable from 2015 to 2016, with a slight increase of 5 million US dollars. From 2016 onwards, a declining trend is observed, decreasing from 5335 million in 2016 to 4760 million in 2019. This represents a reduction of approximately 11% over the last four-year period, indicating a gradual repayment or restructuring of debt obligations.

Total Raytheon Company stockholders’ equity

Stockholders’ equity experienced a slight decline from 10128 million in 2015 to 9963 million in 2017. However, from 2017, equity showed a strong upward trend, increasing to 11472 million in 2018 and further to 12223 million in 2019. This represents a recovery and growth exceeding 22% over the final two years, suggesting improved retained earnings or capital increases during that period.

Total reported capital

Total reported capital exhibited stability between 2015 and 2017, decreasing marginally from 15458 million to 15013 million. After 2017, it increased significantly to 16527 million in 2018 and to 16983 million in 2019, aligned with the growth observed in equity. The overall increase after 2017 indicates a strengthening of the company’s financial base via capital or equity expansions, despite reducing debt levels.

Adjusted total debt

Adjusted total debt followed a similar declining pattern to reported debt, rising slightly from 6306 million in 2015 to a peak of 6421 million in 2016, then steadily decreasing to 5679 million by 2019. The consistent decline from 2016 through 2019 suggests ongoing efforts to reduce liabilities when considering adjustments.

Adjusted total equity

Adjusted total equity showed a slight decline from 9803 million in 2015 to 9777 million in 2016, followed by a gradual increase to 9951 million in 2017. A more marked increase occurred in 2018 to 11566 million, with a further moderate rise to 11749 million in 2019. The pattern mirrors the reported equity trend and indicates stronger equity positions after 2017, once adjustments are accounted for.

Adjusted total capital

The adjusted total capital remained relatively flat between 2015 and 2017, fluctuating between 15910 million and 16198 million. Thereafter, a notable increase took place from 15910 million in 2017 to 17463 million in 2018, with a marginal decline to 17428 million in 2019. This reveals an overall strengthening of the adjusted capital base, particularly in 2018, consistent with growth in adjusted equity and reductions in adjusted debt.

Net Income Attributable to Raytheon Company

The net income showed a fluctuating but generally upward trend over the five-year period. It started at 2,074 million USD in 2015, increased modestly to 2,211 million USD in 2016, then experienced a decline to 2,024 million USD in 2017. Following this, there was a significant increase in 2018, reaching 2,909 million USD, and the upward trajectory continued in 2019, peaking at 3,343 million USD. Overall, the net income increased by approximately 61% from 2015 to 2019, indicating improved profitability despite some variability.

Adjusted Net Income

The adjusted net income displayed more volatility compared to the net income attributable to the company. Beginning at 2,281 million USD in 2015, the figure dropped to 2,050 million USD in 2016 and further declined to 1,727 million USD in 2017, showing a downward trend during these years. However, there was a sharp recovery in 2018, with adjusted net income rising to 3,631 million USD, surpassing the initial values from 2015. This was followed by a decrease in 2019 to 2,653 million USD. Despite fluctuations, the adjusted net income in 2019 remained above the levels recorded at the beginning of the period.

Comparative Insights

Both net income and adjusted net income exhibit cyclical patterns, but the adjusted net income appears to be more sensitive to adjustments or non-recurring items. The pronounced spike in 2018 for both metrics suggests an anomalous event or favorable conditions impacting earnings that year. Nevertheless, the overall increase in net income points to a strengthening earnings base over the period. The divergence between adjusted and reported net income in some years highlights the importance of analyzing both measures to understand underlying performance nuances.