Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Raytheon Co., consolidated balance sheet: assets

US$ in millions

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Cash and cash equivalents	4,292)	3,608)	3,103)	3,303)	2,328)
Short-term investments	—)	—)	297)	100)	872)
Receivables, net	1,364)	1,648)	1,324)	1,218)	1,169)
Contract assets	6,122)	5,594)	5,247)	4,984)	4,395)
Inventories	671)	758)	594)	659)	635)
Prepaid expenses and other current assets	633)	528)	761)	414)	413)
Current assets	13,082)	12,136)	11,326)	10,678)	9,812)
Property, plant and equipment, net	3,353)	2,840)	2,439)	2,166)	2,005)
Operating lease right-of-use assets	875)	—)	—)	—)	—)
Goodwill	14,882)	14,864)	14,871)	14,788)	14,731)
Marketable securities held in trust	753)	642)	633)	550)	525)
Computer software, net of accumulated amortization	252)	261)	288)	291)	294)
Other intangible assets, net of accumulated amortization	283)	361)	481)	598)	700)
Deferred tax asset	534)	331)	537)	753)	906)
Other noncurrent assets, net	552)	429)	285)	228)	308)
Other assets, net	2,374)	2,024)	2,224)	2,420)	2,733)
Noncurrent assets	21,484)	19,728)	19,534)	19,374)	19,469)
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)

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).

Total assets experienced a consistent upward trajectory over the five-year period, increasing from US$ 29,281 million in 2015 to US$ 34,566 million in 2019. This expansion was driven by growth in both current and noncurrent asset categories, with a more pronounced acceleration in total asset value occurring between 2018 and 2019.

Liquidity and Current Asset Trends: Current assets grew steadily from US$ 9,812 million in 2015 to US$ 13,082 million in 2019. A primary driver of this increase was the growth in cash and cash equivalents, which rose by approximately 84% over the period. Contract assets also showed a consistent increase, rising from US$ 4,395 million to US$ 6,122 million, suggesting an increase in unbilled receivables or work-in-progress. Receivables, net, peaked in 2018 at US$ 1,648 million before declining to US$ 1,364 million in 2019, indicating a potential improvement in collection efficiency or a shift in billing cycles toward the end of the period.
Fixed Assets and Capital Investment: A positive trend is observed in property, plant, and equipment (net), which grew from US$ 2,005 million in 2015 to US$ 3,353 million in 2019. This suggests a sustained period of capital expenditure to expand operational capacity. In 2019, the balance sheet reflected the introduction of operating lease right-of-use assets valued at US$ 875 million, reflecting changes in accounting standards regarding lease recognition.
Intangible Assets and Goodwill: Goodwill remained remarkably stable, fluctuating minimally around the US$ 14.8 billion mark, which indicates an absence of significant new acquisitions during this timeframe. Conversely, other intangible assets showed a clear downward trend, decreasing from US$ 700 million in 2015 to US$ 283 million in 2019, likely attributable to scheduled amortization. Computer software also experienced a gradual decline, decreasing from US$ 294 million to US$ 252 million over the same period.
Other Noncurrent Asset Movements: Deferred tax assets exhibited a general decline from US$ 906 million in 2015 to a low of US$ 331 million in 2018, before recovering to US$ 534 million in 2019. Marketable securities held in trust showed a gradual increase, rising from US$ 525 million in 2015 to US$ 753 million in 2019, reflecting a cautious growth in restricted long-term holdings.

Raytheon Co. (NYSE:RTN)

Balance Sheet: Assets

Assets: Selected Items

Current Assets: Selected Items