Return on Assets (ROA)
since 2005
Calculation
Raytheon Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Raytheon Company1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 9.67% | = | 100 | × | 3,343) | ÷ | 34,566) |
| Dec 31, 2018 | 9.13% | = | 100 | × | 2,909) | ÷ | 31,864) |
| Dec 31, 2017 | 6.56% | = | 100 | × | 2,024) | ÷ | 30,860) |
| Dec 31, 2016 | 7.36% | = | 100 | × | 2,211) | ÷ | 30,052) |
| Dec 31, 2015 | 7.08% | = | 100 | × | 2,074) | ÷ | 29,281) |
| Dec 31, 2014 | 8.04% | = | 100 | × | 2,244) | ÷ | 27,900) |
| Dec 31, 2013 | 7.69% | = | 100 | × | 1,996) | ÷ | 25,967) |
| Dec 31, 2012 | 7.07% | = | 100 | × | 1,888) | ÷ | 26,686) |
| Dec 31, 2011 | 7.22% | = | 100 | × | 1,866) | ÷ | 25,854) |
| Dec 31, 2010 | 7.53% | = | 100 | × | 1,840) | ÷ | 24,422) |
| Dec 31, 2009 | 8.20% | = | 100 | × | 1,935) | ÷ | 23,607) |
| Dec 31, 2008 | 7.18% | = | 100 | × | 1,672) | ÷ | 23,296) |
| Dec 31, 2007 | 11.07% | = | 100 | × | 2,578) | ÷ | 23,281) |
| Dec 31, 2006 | 5.03% | = | 100 | × | 1,283) | ÷ | 25,491) |
| Dec 31, 2005 | 3.57% | = | 100 | × | 871) | ÷ | 24,381) |
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 period between 2005 and 2019 is characterized by a substantial expansion in both net income and the total asset base, though the efficiency of asset utilization experienced distinct phases of volatility and stability. Net income grew from 871 million USD in 2005 to 3.343 billion USD in 2019, while total assets increased from 24.381 billion USD to 34.566 billion USD over the same timeframe.
- Early Period Volatility
- A significant spike in Return on Assets (ROA) is observed in 2007, reaching a peak of 11.07%. This was driven by a sharp increase in net income to 2.578 billion USD occurring simultaneously with a decrease in total assets to 23.281 billion USD. This peak was short-lived, as the ratio declined to 7.18% in 2008, reflecting a correction in profitability.
- Mid-Term Stability
- From 2009 through 2016, ROA remained relatively range-bound, fluctuating between 6.56% and 8.20%. During this interval, the growth in net income largely mirrored the growth in total assets, suggesting that the company maintained a consistent level of operational efficiency relative to its asset expansion.
- Recent Performance Acceleration
- A notable upward trend in asset efficiency emerged after 2017. ROA climbed from 6.56% in 2017 to 9.67% in 2019. This improvement was fueled by a rapid acceleration in net income, which increased by approximately 65% over these three years, significantly outpacing the growth of the asset base during the same period.
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Comparison to Competitors
Raytheon Co., ROA, 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 | 9.67% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 9.13% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 6.56% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 7.36% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 7.08% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 8.04% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 7.69% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | 7.07% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 7.22% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | 7.53% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | 8.20% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | 7.18% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | 11.07% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 5.03% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 3.57% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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., ROA, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 9.67% | 2.72% |
| Dec 31, 2018 | 9.13% | 1.74% |
| Dec 31, 2017 | 6.56% | 1.83% |
| Dec 31, 2016 | 7.36% | 4.09% |
| Dec 31, 2015 | 7.08% | 2.17% |
| Dec 31, 2014 | 8.04% | 3.87% |
| Dec 31, 2013 | 7.69% | 3.45% |
| Dec 31, 2012 | 7.07% | 3.30% |
| Dec 31, 2011 | 7.22% | 3.30% |
| Dec 31, 2010 | 7.53% | 2.70% |
| Dec 31, 2009 | 8.20% | 2.16% |
| Dec 31, 2008 | 7.18% | 3.33% |
| Dec 31, 2007 | 11.07% | 3.89% |
| Dec 31, 2006 | 5.03% | 3.91% |
| Dec 31, 2005 | 3.57% | 3.25% |
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., ROA, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 9.67% | 2.56% |
| Dec 31, 2018 | 9.13% | 3.16% |
| Dec 31, 2017 | 6.56% | 3.59% |
| Dec 31, 2016 | 7.36% | 4.55% |
| Dec 31, 2015 | 7.08% | 3.52% |
| Dec 31, 2014 | 8.04% | 4.31% |
| Dec 31, 2013 | 7.69% | 3.91% |
| Dec 31, 2012 | 7.07% | 3.38% |
| Dec 31, 2011 | 7.22% | 3.69% |
| Dec 31, 2010 | 7.53% | 3.03% |
| Dec 31, 2009 | 8.20% | 2.24% |
| Dec 31, 2008 | 7.18% | 3.10% |
| Dec 31, 2007 | 11.07% | 3.87% |
| Dec 31, 2006 | 5.03% | 6.41% |
| Dec 31, 2005 | 3.57% | 1.42% |
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).