Raytheon Co. (NYSE:RTN)

The analysis focuses on the company's net income attributable and total assets alongside the calculated Return on Assets (ROA) percentage over a fifteen-year period, from 2005 to 2019.

Net Income Trends

The net income demonstrates a generally upward trajectory over the analyzed period. Starting from $871 million in 2005, it increased substantially to $2,578 million by 2007, indicating strong performance growth during this phase. A decline is noted in 2008 with net income dropping to $1,672 million, which might reflect adverse market or internal conditions that year. Following 2008, the net income recovered and continued a moderate increase with some fluctuations, reaching $3,343 million by 2019. This pattern reflects resilience and overall growth in profitability across the period.

Total Assets Evolution

Total assets gradually increased from $24,381 million in 2005 to $34,566 million in 2019. While there was a slight decline during the 2006 to 2007 period, the overall trend is positive, indicating the expansion of the company’s asset base. From 2010 onwards, total assets consistently climbed, reflecting possible ongoing investments and asset acquisitions contributing to capacity growth.

Return on Assets (ROA) Analysis

ROA began at 3.57% in 2005 and showed a significant increase by 2007, reaching 11.07%. After this peak, ROA declined to 7.18% in 2008, which corresponds with the net income drop in the same year. Subsequently, ROA maintained a relatively stable range between 6.56% and 8.2% through 2017, indicating consistent efficiency in asset utilization. In the last two years of the dataset, ROA improved noticeably, reaching 9.67% in 2019. This improvement in ROA suggests enhanced profitability relative to the asset base in those years.

Overall Insights

The overall financial indicators reflect growth in profitability and asset base with some periods of volatility. The strong gains prior to 2008 were followed by a clear impact in that year, which aligns with global economic conditions at the time. The subsequent recovery and growth indicate effective management and favorable business conditions. The increased asset base over time, accompanied by a stable to improving ROA, suggests that the company has been successful in leveraging its assets to generate earnings. The data imply positive long-term financial health and operational efficiency improvements, especially pronounced in the final years of the period under review.