Return on Equity (ROE)
since 2005
Calculation
Raytheon Co., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Raytheon Company1 | ÷ | Total Raytheon Company stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2019 | 27.35% | = | 100 | × | 3,343) | ÷ | 12,223) |
| Dec 31, 2018 | 25.36% | = | 100 | × | 2,909) | ÷ | 11,472) |
| Dec 31, 2017 | 20.32% | = | 100 | × | 2,024) | ÷ | 9,963) |
| Dec 31, 2016 | 21.97% | = | 100 | × | 2,211) | ÷ | 10,066) |
| Dec 31, 2015 | 20.48% | = | 100 | × | 2,074) | ÷ | 10,128) |
| Dec 31, 2014 | 23.56% | = | 100 | × | 2,244) | ÷ | 9,525) |
| Dec 31, 2013 | 18.09% | = | 100 | × | 1,996) | ÷ | 11,035) |
| Dec 31, 2012 | 23.52% | = | 100 | × | 1,888) | ÷ | 8,026) |
| Dec 31, 2011 | 22.81% | = | 100 | × | 1,866) | ÷ | 8,181) |
| Dec 31, 2010 | 18.86% | = | 100 | × | 1,840) | ÷ | 9,754) |
| Dec 31, 2009 | 19.69% | = | 100 | × | 1,935) | ÷ | 9,827) |
| Dec 31, 2008 | 18.40% | = | 100 | × | 1,672) | ÷ | 9,087) |
| Dec 31, 2007 | 20.55% | = | 100 | × | 2,578) | ÷ | 12,542) |
| Dec 31, 2006 | 11.56% | = | 100 | × | 1,283) | ÷ | 11,101) |
| Dec 31, 2005 | 8.13% | = | 100 | × | 871) | ÷ | 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 financial performance from 2005 to 2019 is characterized by a significant expansion in profitability and a corresponding upward trajectory in the return on equity (ROE). Over this fifteen-year period, net income grew from 871 million USD to 3,343 million USD, while ROE increased from 8.13% to 27.35%.
- Net Income Trends
- A consistent long-term growth pattern is observed in net income attributable to the company. Following a sharp increase between 2005 and 2007, income levels remained relatively stable, fluctuating between 1.6 billion USD and 2.3 billion USD for much of the subsequent decade. A notable acceleration in earnings occurred between 2017 and 2019, where net income rose from 2,024 million USD to 3,343 million USD.
- Stockholders' Equity Fluctuations
- Total stockholders' equity exhibited more volatility than net income. Equity levels decreased from a 2007 peak of 12,542 million USD to a low of 8,026 million USD by 2012. This contraction in the equity base contributed to the elevation of the ROE during the 2011-2012 period. From 2013 onward, equity began a gradual recovery, reaching 12,223 million USD by 2019.
- Return on Equity (ROE) Dynamics
- The ROE experienced three distinct phases. The first phase was a period of rapid escalation from 2005 (8.13%) to 2007 (20.55%). The second phase was a period of relative stabilization between 2008 and 2017, with the ratio generally oscillating between 18% and 23%. The final phase was a period of marked improvement from 2018 to 2019, culminating in a peak ROE of 27.35%.
The overall increase in ROE is attributed to the combined effect of substantial net income growth and a managed equity base. The terminal growth in ROE during 2018 and 2019 indicates a high efficiency in generating profits relative to shareholders' investments, as the growth in net income significantly outpaced the growth in total equity during those final two years.
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Comparison to Competitors
Raytheon Co., ROE, 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 | 27.35% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Dec 31, 2018 | 25.36% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Dec 31, 2017 | 20.32% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Dec 31, 2016 | 21.97% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Dec 31, 2015 | 20.48% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Dec 31, 2014 | 23.56% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Dec 31, 2013 | 18.09% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Dec 31, 2012 | 23.52% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Dec 31, 2011 | 22.81% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Dec 31, 2010 | 18.86% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Dec 31, 2009 | 19.69% | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Dec 31, 2008 | 18.40% | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Dec 31, 2007 | 20.55% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Dec 31, 2006 | 11.56% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Dec 31, 2005 | 8.13% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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., ROE, long-term trends, comparison to sector (capital goods)
| Raytheon Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2019 | 27.35% | 18.11% |
| Dec 31, 2018 | 25.36% | 11.28% |
| Dec 31, 2017 | 20.32% | 10.13% |
| Dec 31, 2016 | 21.97% | 20.08% |
| Dec 31, 2015 | 20.48% | 10.42% |
| Dec 31, 2014 | 23.56% | 18.16% |
| Dec 31, 2013 | 18.09% | 15.14% |
| Dec 31, 2012 | 23.52% | 17.58% |
| Dec 31, 2011 | 22.81% | 19.63% |
| Dec 31, 2010 | 18.86% | 15.88% |
| Dec 31, 2009 | 19.69% | 13.47% |
| Dec 31, 2008 | 18.40% | 24.97% |
| Dec 31, 2007 | 20.55% | 22.64% |
| Dec 31, 2006 | 11.56% | 22.16% |
| Dec 31, 2005 | 8.13% | 17.27% |
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., ROE, long-term trends, comparison to industry (industrials)
| Raytheon Co. | Industrials | |
|---|---|---|
| Dec 31, 2019 | 27.35% | 14.56% |
| Dec 31, 2018 | 25.36% | 17.95% |
| Dec 31, 2017 | 20.32% | 18.24% |
| Dec 31, 2016 | 21.97% | 21.69% |
| Dec 31, 2015 | 20.48% | 16.11% |
| Dec 31, 2014 | 23.56% | 19.68% |
| Dec 31, 2013 | 18.09% | 16.40% |
| Dec 31, 2012 | 23.52% | 17.20% |
| Dec 31, 2011 | 22.81% | 20.10% |
| Dec 31, 2010 | 18.86% | 16.41% |
| Dec 31, 2009 | 19.69% | 12.84% |
| Dec 31, 2008 | 18.40% | 20.74% |
| Dec 31, 2007 | 20.55% | 20.36% |
| Dec 31, 2006 | 11.56% | 32.16% |
| Dec 31, 2005 | 8.13% | 7.80% |
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).