Debt to Equity
since 2005
Calculation
Raytheon Co., debt to equity, long-term trends, calculation
| Debt to equity | = | Commercial paper and long-term debt1 | ÷ | Total Raytheon Company stockholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2019 | 0.39 | = | 4,760) | ÷ | 12,223) |
| Dec 31, 2018 | 0.44 | = | 5,055) | ÷ | 11,472) |
| Dec 31, 2017 | 0.51 | = | 5,050) | ÷ | 9,963) |
| Dec 31, 2016 | 0.53 | = | 5,335) | ÷ | 10,066) |
| Dec 31, 2015 | 0.53 | = | 5,330) | ÷ | 10,128) |
| Dec 31, 2014 | 0.56 | = | 5,330) | ÷ | 9,525) |
| Dec 31, 2013 | 0.43 | = | 4,734) | ÷ | 11,035) |
| Dec 31, 2012 | 0.59 | = | 4,731) | ÷ | 8,026) |
| Dec 31, 2011 | 0.56 | = | 4,605) | ÷ | 8,181) |
| Dec 31, 2010 | 0.37 | = | 3,610) | ÷ | 9,754) |
| Dec 31, 2009 | 0.24 | = | 2,329) | ÷ | 9,827) |
| Dec 31, 2008 | 0.25 | = | 2,309) | ÷ | 9,087) |
| Dec 31, 2007 | 0.18 | = | 2,268) | ÷ | 12,542) |
| Dec 31, 2006 | 0.36 | = | 3,965) | ÷ | 11,101) |
| Dec 31, 2005 | 0.42 | = | 4,456) | ÷ | 10,709) |
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 capital structure of the company between 2005 and 2019 was characterized by fluctuating leverage levels, driven by periodic shifts in both long-term debt obligations and total stockholders' equity.
- Debt Obligations Trend
- A significant reduction in commercial paper and long-term debt occurred between 2005 and 2007, with balances falling from 4,456 million USD to 2,268 million USD. This was followed by a prolonged period of debt accumulation that peaked between 2014 and 2016 at approximately 5,330 million USD. From 2017 to 2019, a gradual decline in total debt was observed, ending the period at 4,760 million USD.
- Stockholders' Equity Dynamics
- Equity levels showed a general upward trajectory over the long term, though substantial volatility was present. A notable contraction occurred in 2008, where equity dropped to 9,087 million USD from a peak of 12,542 million USD in 2007. Following a period of relative stability and a sharp increase in 2013 to 11,035 million USD, equity grew consistently to reach 12,223 million USD by 2019.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio highlights three distinct phases of financial leverage. The first phase (2005–2007) saw a sharp decline in leverage, reaching a period low of 0.18. The second phase (2008–2012) was marked by an increase in leverage, peaking at 0.59 in 2012, coinciding with lower equity levels and rising debt. The final phase (2013–2019) was characterized by fluctuating but generally improving leverage, with the ratio decreasing from a secondary peak of 0.56 in 2014 to 0.39 by the end of 2019, suggesting a return to a more balanced capital structure.
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Comparison to Competitors
Raytheon Co., debt to equity, 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 | 0.39 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Dec 31, 2018 | 0.44 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Dec 31, 2017 | 0.51 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Dec 31, 2016 | 0.53 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Dec 31, 2015 | 0.53 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Dec 31, 2014 | 0.56 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Dec 31, 2013 | 0.43 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Dec 31, 2012 | 0.59 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Dec 31, 2011 | 0.56 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Dec 31, 2010 | 0.37 | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Dec 31, 2009 | 0.24 | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Dec 31, 2008 | 0.25 | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Dec 31, 2007 | 0.18 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Dec 31, 2006 | 0.36 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Dec 31, 2005 | 0.42 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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., debt to equity, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 0.39 | 2.08 |
| Dec 31, 2018 | 0.44 | 2.03 |
| Dec 31, 2017 | 0.51 | 1.74 |
| Dec 31, 2016 | 0.53 | 1.60 |
| Dec 31, 2015 | 0.53 | 1.64 |
| Dec 31, 2014 | 0.56 | 2.06 |
| Dec 31, 2013 | 0.43 | 2.00 |
| Dec 31, 2012 | 0.59 | 2.56 |
| Dec 31, 2011 | 0.56 | 3.04 |
| Dec 31, 2010 | 0.37 | 3.10 |
| Dec 31, 2009 | 0.24 | 3.46 |
| Dec 31, 2008 | 0.25 | 4.19 |
| Dec 31, 2007 | 0.18 | 3.21 |
| Dec 31, 2006 | 0.36 | 3.02 |
| Dec 31, 2005 | 0.42 | 2.53 |
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., debt to equity, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 0.39 | 1.82 |
| Dec 31, 2018 | 0.44 | 1.85 |
| Dec 31, 2017 | 0.51 | 1.65 |
| Dec 31, 2016 | 0.53 | 1.54 |
| Dec 31, 2015 | 0.53 | 1.51 |
| Dec 31, 2014 | 0.56 | 1.89 |
| Dec 31, 2013 | 0.43 | 1.79 |
| Dec 31, 2012 | 0.59 | 2.29 |
| Dec 31, 2011 | 0.56 | 2.60 |
| Dec 31, 2010 | 0.37 | 2.68 |
| Dec 31, 2009 | 0.24 | 3.01 |
| Dec 31, 2008 | 0.25 | 3.54 |
| Dec 31, 2007 | 0.18 | 2.73 |
| Dec 31, 2006 | 0.36 | 2.49 |
| Dec 31, 2005 | 0.42 | 2.42 |
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).