Current Ratio
since 2005
Calculation
Raytheon Co., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 1.34 | = | 13,082) | ÷ | 9,791) |
| Dec 31, 2018 | 1.46 | = | 12,136) | ÷ | 8,288) |
| Dec 31, 2017 | 1.54 | = | 11,326) | ÷ | 7,348) |
| Dec 31, 2016 | 1.66 | = | 10,678) | ÷ | 6,427) |
| Dec 31, 2015 | 1.60 | = | 9,812) | ÷ | 6,126) |
| Dec 31, 2014 | 1.74 | = | 10,292) | ÷ | 5,930) |
| Dec 31, 2013 | 1.69 | = | 9,816) | ÷ | 5,810) |
| Dec 31, 2012 | 1.57 | = | 9,246) | ÷ | 5,902) |
| Dec 31, 2011 | 1.52 | = | 9,309) | ÷ | 6,130) |
| Dec 31, 2010 | 1.48 | = | 8,822) | ÷ | 5,960) |
| Dec 31, 2009 | 1.42 | = | 7,868) | ÷ | 5,523) |
| Dec 31, 2008 | 1.44 | = | 7,417) | ÷ | 5,149) |
| Dec 31, 2007 | 1.59 | = | 7,616) | ÷ | 4,788) |
| Dec 31, 2006 | 1.42 | = | 9,517) | ÷ | 6,715) |
| Dec 31, 2005 | 1.28 | = | 7,567) | ÷ | 5,900) |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of short-term liquidity from 2005 to 2019 reveals a period of expansion and stabilization followed by a gradual contraction in the current ratio. While both current assets and current liabilities increased over the long term, the divergent growth rates in the latter part of the period impacted the overall liquidity position.
- Current Asset Trends
- Current assets demonstrated a consistent long-term upward trajectory, rising from 7,567 million US dollars in 2005 to 13,082 million US dollars by 2019. Although there were minor fluctuations between 2007 and 2009, the growth remained steady, with a more pronounced increase occurring after 2015.
- Current Liability Trends
- Current liabilities grew from 5,900 million US dollars in 2005 to 9,791 million US dollars in 2019. A notable acceleration in liability growth is observed between 2016 and 2019, during which current liabilities increased by approximately 52%, significantly outpacing the growth of current assets in the same timeframe.
- Current Ratio Performance
- The current ratio experienced an initial growth phase, rising from 1.28 in 2005 to a peak of 1.74 in 2014. This indicates a period of increasing liquidity and a strengthening margin of safety for meeting short-term obligations. Following 2014, a sustained downward trend emerged, with the ratio declining to 1.34 by 2019. This contraction reflects a strategic or operational shift where the growth of short-term obligations began to exceed the accumulation of current assets.
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Comparison to Competitors
Raytheon Co., current ratio, long-term trends, comparison to competitors
| Raytheon Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 1.34 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.46 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 1.54 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.66 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 1.60 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 1.74 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 1.69 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 1.57 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 1.52 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 1.48 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 1.42 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 1.44 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 1.59 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 1.42 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 1.28 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Raytheon Co., current ratio, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 1.34 | 1.17 |
| Dec 31, 2018 | 1.46 | 1.17 |
| Dec 31, 2017 | 1.54 | 1.29 |
| Dec 31, 2016 | 1.66 | 1.27 |
| Dec 31, 2015 | 1.60 | 1.26 |
| Dec 31, 2014 | 1.74 | 1.29 |
| Dec 31, 2013 | 1.69 | 1.34 |
| Dec 31, 2012 | 1.57 | 1.31 |
| Dec 31, 2011 | 1.52 | 1.29 |
| Dec 31, 2010 | 1.48 | 1.28 |
| Dec 31, 2009 | 1.42 | 1.23 |
| Dec 31, 2008 | 1.44 | 1.07 |
| Dec 31, 2007 | 1.59 | 1.08 |
| Dec 31, 2006 | 1.42 | 1.05 |
| Dec 31, 2005 | 1.28 | 1.03 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Raytheon Co., current ratio, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 1.34 | 1.16 |
| Dec 31, 2018 | 1.46 | 1.13 |
| Dec 31, 2017 | 1.54 | 1.24 |
| Dec 31, 2016 | 1.66 | 1.22 |
| Dec 31, 2015 | 1.60 | 1.24 |
| Dec 31, 2014 | 1.74 | 1.26 |
| Dec 31, 2013 | 1.69 | 1.33 |
| Dec 31, 2012 | 1.57 | 1.30 |
| Dec 31, 2011 | 1.52 | 1.30 |
| Dec 31, 2010 | 1.48 | 1.28 |
| Dec 31, 2009 | 1.42 | 1.23 |
| Dec 31, 2008 | 1.44 | 1.06 |
| Dec 31, 2007 | 1.59 | 1.07 |
| Dec 31, 2006 | 1.42 | 1.05 |
| Dec 31, 2005 | 1.28 | 1.05 |
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), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).