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
- Current Assets
- The current assets exhibit a general upward trend from 2005 to 2019. Starting at 7,567 million US dollars in 2005, they increased significantly to 13,082 million US dollars by 2019. There is a noticeable dip between 2006 and 2008, where current assets declined from 9,517 to 7,417 million US dollars. Afterward, a consistent recovery and gradual growth are evident, without any sharp volatility.
- Current Liabilities
- Current liabilities show more fluctuation over the period. Initially, liabilities rose from 5,900 million US dollars in 2005 to a peak of 6,715 million US dollars in 2006, then dropped sharply to 4,788 million US dollars in 2007. Subsequently, current liabilities mostly increased again, reaching 9,791 million US dollars by 2019. The trend indicates increasing obligations particularly in the later years, with significant growth from 2016 onward.
- Current Ratio
- The current ratio starts at 1.28 in 2005 and generally trends upward until it peaks near 1.74 in 2014, indicating improving liquidity and ability to cover short-term obligations. Post-2014, the ratio declines steadily to 1.34 in 2019. This suggests a weakening liquidity position in the most recent years, potentially driven by the more rapid growth of current liabilities relative to current assets.
- Summary
- Overall, there has been steady growth in current assets over the examined period, with a short-term decline during the mid-2000s. Current liabilities have shown greater volatility but ultimately increased substantially by 2019. The current ratio reflects initial improvements in liquidity up to 2014, followed by a decline that may signal increased short-term financial risk. The narrowing current ratio combined with rising liabilities warrants monitoring of liquidity management and short-term financial strategy.
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).