Net Profit Margin
since 2005
Calculation
Raytheon Co., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Raytheon Company1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 11.46% | = | 100 | × | 3,343) | ÷ | 29,176) |
| Dec 31, 2018 | 10.75% | = | 100 | × | 2,909) | ÷ | 27,058) |
| Dec 31, 2017 | 7.98% | = | 100 | × | 2,024) | ÷ | 25,348) |
| Dec 31, 2016 | 9.19% | = | 100 | × | 2,211) | ÷ | 24,069) |
| Dec 31, 2015 | 8.92% | = | 100 | × | 2,074) | ÷ | 23,247) |
| Dec 31, 2014 | 9.83% | = | 100 | × | 2,244) | ÷ | 22,826) |
| Dec 31, 2013 | 8.42% | = | 100 | × | 1,996) | ÷ | 23,706) |
| Dec 31, 2012 | 7.73% | = | 100 | × | 1,888) | ÷ | 24,414) |
| Dec 31, 2011 | 7.51% | = | 100 | × | 1,866) | ÷ | 24,857) |
| Dec 31, 2010 | 7.31% | = | 100 | × | 1,840) | ÷ | 25,183) |
| Dec 31, 2009 | 7.78% | = | 100 | × | 1,935) | ÷ | 24,881) |
| Dec 31, 2008 | 7.21% | = | 100 | × | 1,672) | ÷ | 23,174) |
| Dec 31, 2007 | 12.10% | = | 100 | × | 2,578) | ÷ | 21,301) |
| Dec 31, 2006 | 6.32% | = | 100 | × | 1,283) | ÷ | 20,291) |
| Dec 31, 2005 | 3.98% | = | 100 | × | 871) | ÷ | 21,894) |
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 profitability from 2005 to 2019 reveals a general upward trajectory in net profit margins, characterized by an initial period of high volatility followed by a sustained phase of expansion. The net profit margin increased from 3.98% in 2005 to 11.46% by 2019, indicating a significant improvement in the company's ability to convert revenue into actual profit.
- Early Volatility and Peak (2005–2008)
- A rapid escalation in profitability is observed between 2005 and 2007, with the net profit margin peaking at 12.10%. However, this was followed by a sharp correction in 2008, where the margin declined to 7.21%. This period represents the most significant fluctuation in profit efficiency throughout the observed timeframe.
- Period of Stabilization (2009–2012)
- Following the 2008 decline, net profit margins entered a period of relative stability. Between 2009 and 2012, the margin remained within a narrow range of 7.31% to 7.78%. During this time, net sales grew from approximately 24.8 billion to 24.4 billion, while net income remained steady around 1.8 billion to 1.9 billion.
- Sustained Margin Expansion (2013–2019)
- A secondary growth phase began in 2013, characterized by a gradual increase in profitability. Despite a brief dip to 7.98% in 2017, the net profit margin climbed to 10.75% in 2018 and reached 11.46% in 2019. This expansion was supported by a substantial increase in net income, which rose from 1.99 billion in 2013 to 3.34 billion in 2019, outpacing the growth rate of net sales.
The correlation between net sales and net income indicates that the growth in the net profit margin was driven more by operational efficiency and bottom-line growth than by mere increases in top-line revenue. By 2019, the company achieved a level of profitability nearly triple that of its 2005 performance.
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Comparison to Competitors
Raytheon Co., net profit margin, 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 | 11.46% | -0.83% | 12.00% | 10.34% | -5.69% | 16.73% | 10.42% | 7.19% |
| Dec 31, 2018 | 10.75% | 10.34% | 11.86% | 9.93% | -19.69% | 16.18% | 9.39% | 7.92% |
| Dec 31, 2017 | 7.98% | 8.78% | 1.77% | 14.63% | -5.11% | 4.08% | 3.92% | 7.61% |
| Dec 31, 2016 | 9.19% | 5.18% | -0.19% | 9.73% | 8.00% | 12.24% | 11.22% | 8.83% |
| Dec 31, 2015 | 8.92% | 5.39% | 4.76% | 9.49% | -5.79% | 12.36% | 7.81% | 13.56% |
| Dec 31, 2014 | 9.83% | 6.00% | 7.09% | 7.95% | 14.27% | 10.52% | 7.93% | 9.55% |
| Dec 31, 2013 | 8.42% | 5.29% | 7.19% | 8.44% | 12.99% | 10.05% | 6.57% | 9.14% |
| Dec 31, 2012 | 7.73% | 4.77% | 9.01% | 7.46% | 13.62% | 7.77% | 5.82% | 8.89% |
| Dec 31, 2011 | 7.51% | 5.85% | 8.59% | 8.41% | 14.97% | 5.66% | 5.71% | 8.56% |
| Dec 31, 2010 | 7.31% | 5.14% | 6.77% | 6.77% | 11.59% | 6.06% | 6.39% | 8.05% |
| Dec 31, 2009 | 7.78% | 1.92% | 3.03% | 3.23% | 10.62% | 6.97% | 6.69% | 7.30% |
| Dec 31, 2008 | 7.21% | 4.39% | 7.40% | 6.88% | 15.44% | 7.64% | 7.53% | 8.08% |
| Dec 31, 2007 | 12.10% | 6.14% | 8.44% | 7.63% | 22.31% | 7.07% | 7.25% | 7.83% |
| Dec 31, 2006 | 6.32% | 3.60% | 9.10% | 7.68% | 20.68% | 6.64% | 6.38% | 7.92% |
| Dec 31, 2005 | 3.98% | 4.69% | 8.39% | 7.24% | 17.66% | 5.98% | 4.90% | 7.26% |
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., net profit margin, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 11.46% | 5.03% |
| Dec 31, 2018 | 10.75% | 2.99% |
| Dec 31, 2017 | 7.98% | 3.41% |
| Dec 31, 2016 | 9.19% | 7.61% |
| Dec 31, 2015 | 8.92% | 4.69% |
| Dec 31, 2014 | 9.83% | 9.51% |
| Dec 31, 2013 | 8.42% | 8.78% |
| Dec 31, 2012 | 7.73% | 8.73% |
| Dec 31, 2011 | 7.51% | 9.04% |
| Dec 31, 2010 | 7.31% | 7.93% |
| Dec 31, 2009 | 7.78% | 6.61% |
| Dec 31, 2008 | 7.21% | 9.45% |
| Dec 31, 2007 | 12.10% | 11.53% |
| Dec 31, 2006 | 6.32% | 10.82% |
| Dec 31, 2005 | 3.98% | 9.72% |
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., net profit margin, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 11.46% | 4.11% |
| Dec 31, 2018 | 10.75% | 4.75% |
| Dec 31, 2017 | 7.98% | 5.79% |
| Dec 31, 2016 | 9.19% | 7.43% |
| Dec 31, 2015 | 8.92% | 6.48% |
| Dec 31, 2014 | 9.83% | 8.76% |
| Dec 31, 2013 | 8.42% | 8.23% |
| Dec 31, 2012 | 7.73% | 7.39% |
| Dec 31, 2011 | 7.51% | 8.26% |
| Dec 31, 2010 | 7.31% | 7.48% |
| Dec 31, 2009 | 7.78% | 5.76% |
| Dec 31, 2008 | 7.21% | 7.27% |
| Dec 31, 2007 | 12.10% | 9.56% |
| Dec 31, 2006 | 6.32% | 14.87% |
| Dec 31, 2005 | 3.98% | 3.55% |
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).