Stock Analysis on Net
Stock Analysis on Net

Raytheon Co. (NYSE:RTN)

This company has been moved to the archive! The financial data has not been updated since February 12, 2020.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Raytheon Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2019 27.35% = 9.67% × 2.83
Sep 29, 2019 25.34% = 10.03% × 2.53
Jun 30, 2019 25.19% = 9.26% × 2.72
Mar 31, 2019 26.11% = 9.68% × 2.70
Dec 31, 2018 25.36% = 9.13% × 2.78
Sep 30, 2018 21.84% = 8.20% × 2.66
Jul 1, 2018 22.61% = 7.80% × 2.90
Apr 1, 2018 21.01% = 7.05% × 2.98
Dec 31, 2017 20.32% = 6.56% × 3.10
Oct 1, 2017 20.03% = 7.18% × 2.79
Jul 2, 2017 19.71% = 7.05% × 2.80
Apr 2, 2017 22.03% = 7.66% × 2.88
Dec 31, 2016 21.97% = 7.36% × 2.99
Oct 2, 2016 21.38% = 7.60% × 2.81
Jul 3, 2016 20.90% = 7.41% × 2.82
Apr 3, 2016 19.28% = 6.77% × 2.85
Dec 31, 2015 20.48% = 7.08% × 2.89
Sep 27, 2015 — = — × 2.88
Jun 28, 2015 — = — × 2.83
Mar 29, 2015 — = — × 2.86

Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2019 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Raytheon Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 27.35% = 11.46% × 0.84 × 2.83
Sep 29, 2019 25.34% = 11.47% × 0.87 × 2.53
Jun 30, 2019 25.19% = 10.96% × 0.85 × 2.72
Mar 31, 2019 26.11% = 11.11% × 0.87 × 2.70
Dec 31, 2018 25.36% = 10.75% × 0.85 × 2.78
Sep 30, 2018 21.84% = 9.33% × 0.88 × 2.66
Jul 1, 2018 22.61% = 9.24% × 0.84 × 2.90
Apr 1, 2018 21.01% = 8.40% × 0.84 × 2.98
Dec 31, 2017 20.32% = 7.98% × 0.82 × 3.10
Oct 1, 2017 20.03% = 8.77% × 0.82 × 2.79
Jul 2, 2017 19.71% = 8.68% × 0.81 × 2.80
Apr 2, 2017 22.03% = 9.41% × 0.81 × 2.88
Dec 31, 2016 21.97% = 9.19% × 0.80 × 2.99
Oct 2, 2016 21.38% = 9.26% × 0.82 × 2.81
Jul 3, 2016 20.90% = 9.02% × 0.82 × 2.82
Apr 3, 2016 19.28% = 8.23% × 0.82 × 2.85
Dec 31, 2015 20.48% = 8.92% × 0.79 × 2.89
Sep 27, 2015 — = — × — × 2.88
Jun 28, 2015 — = — × — × 2.83
Mar 29, 2015 — = — × — × 2.86

Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2019 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Raytheon Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2019 27.35% = 0.84 × 0.96 × 14.33% × 0.84 × 2.83
Sep 29, 2019 25.34% = 0.85 × 0.96 × 14.09% × 0.87 × 2.53
Jun 30, 2019 25.19% = 0.89 × 0.95 × 13.00% × 0.85 × 2.72
Mar 31, 2019 26.11% = 0.92 × 0.95 × 12.77% × 0.87 × 2.70
Dec 31, 2018 25.36% = 0.92 × 0.95 × 12.41% × 0.85 × 2.78
Sep 30, 2018 21.84% = 0.80 × 0.94 × 12.34% × 0.88 × 2.66
Jul 1, 2018 22.61% = 0.73 × 0.95 × 13.30% × 0.84 × 2.90
Apr 1, 2018 21.01% = 0.67 × 0.94 × 13.25% × 0.84 × 2.98
Dec 31, 2017 20.32% = 0.64 × 0.94 × 13.19% × 0.82 × 3.10
Oct 1, 2017 20.03% = 0.70 × 0.94 × 13.40% × 0.82 × 2.79
Jul 2, 2017 19.71% = 0.70 × 0.93 × 13.34% × 0.81 × 2.80
Apr 2, 2017 22.03% = 0.72 × 0.93 × 14.07% × 0.81 × 2.88
Dec 31, 2016 21.97% = 0.72 × 0.93 × 13.71% × 0.80 × 2.99
Oct 2, 2016 21.38% = 0.73 × 0.93 × 13.58% × 0.82 × 2.81
Jul 3, 2016 20.90% = 0.74 × 0.93 × 13.20% × 0.82 × 2.82
Apr 3, 2016 19.28% = 0.75 × 0.92 × 11.97% × 0.82 × 2.85
Dec 31, 2015 20.48% = 0.74 × 0.92 × 13.08% × 0.79 × 2.89
Sep 27, 2015 — = — × — × — × — × 2.88
Jun 28, 2015 — = — × — × — × — × 2.83
Mar 29, 2015 — = — × — × — × — × 2.86

Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2019 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Raytheon Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2019 9.67% = 11.46% × 0.84
Sep 29, 2019 10.03% = 11.47% × 0.87
Jun 30, 2019 9.26% = 10.96% × 0.85
Mar 31, 2019 9.68% = 11.11% × 0.87
Dec 31, 2018 9.13% = 10.75% × 0.85
Sep 30, 2018 8.20% = 9.33% × 0.88
Jul 1, 2018 7.80% = 9.24% × 0.84
Apr 1, 2018 7.05% = 8.40% × 0.84
Dec 31, 2017 6.56% = 7.98% × 0.82
Oct 1, 2017 7.18% = 8.77% × 0.82
Jul 2, 2017 7.05% = 8.68% × 0.81
Apr 2, 2017 7.66% = 9.41% × 0.81
Dec 31, 2016 7.36% = 9.19% × 0.80
Oct 2, 2016 7.60% = 9.26% × 0.82
Jul 3, 2016 7.41% = 9.02% × 0.82
Apr 3, 2016 6.77% = 8.23% × 0.82
Dec 31, 2015 7.08% = 8.92% × 0.79
Sep 27, 2015 — = — × —
Jun 28, 2015 — = — × —
Mar 29, 2015 — = — × —

Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2019 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Raytheon Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2019 9.67% = 0.84 × 0.96 × 14.33% × 0.84
Sep 29, 2019 10.03% = 0.85 × 0.96 × 14.09% × 0.87
Jun 30, 2019 9.26% = 0.89 × 0.95 × 13.00% × 0.85
Mar 31, 2019 9.68% = 0.92 × 0.95 × 12.77% × 0.87
Dec 31, 2018 9.13% = 0.92 × 0.95 × 12.41% × 0.85
Sep 30, 2018 8.20% = 0.80 × 0.94 × 12.34% × 0.88
Jul 1, 2018 7.80% = 0.73 × 0.95 × 13.30% × 0.84
Apr 1, 2018 7.05% = 0.67 × 0.94 × 13.25% × 0.84
Dec 31, 2017 6.56% = 0.64 × 0.94 × 13.19% × 0.82
Oct 1, 2017 7.18% = 0.70 × 0.94 × 13.40% × 0.82
Jul 2, 2017 7.05% = 0.70 × 0.93 × 13.34% × 0.81
Apr 2, 2017 7.66% = 0.72 × 0.93 × 14.07% × 0.81
Dec 31, 2016 7.36% = 0.72 × 0.93 × 13.71% × 0.80
Oct 2, 2016 7.60% = 0.73 × 0.93 × 13.58% × 0.82
Jul 3, 2016 7.41% = 0.74 × 0.93 × 13.20% × 0.82
Apr 3, 2016 6.77% = 0.75 × 0.92 × 11.97% × 0.82
Dec 31, 2015 7.08% = 0.74 × 0.92 × 13.08% × 0.79
Sep 27, 2015 — = — × — × — × —
Jun 28, 2015 — = — × — × — × —
Mar 29, 2015 — = — × — × — × —

Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2019 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Raytheon Co., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2019 11.46% = 0.84 × 0.96 × 14.33%
Sep 29, 2019 11.47% = 0.85 × 0.96 × 14.09%
Jun 30, 2019 10.96% = 0.89 × 0.95 × 13.00%
Mar 31, 2019 11.11% = 0.92 × 0.95 × 12.77%
Dec 31, 2018 10.75% = 0.92 × 0.95 × 12.41%
Sep 30, 2018 9.33% = 0.80 × 0.94 × 12.34%
Jul 1, 2018 9.24% = 0.73 × 0.95 × 13.30%
Apr 1, 2018 8.40% = 0.67 × 0.94 × 13.25%
Dec 31, 2017 7.98% = 0.64 × 0.94 × 13.19%
Oct 1, 2017 8.77% = 0.70 × 0.94 × 13.40%
Jul 2, 2017 8.68% = 0.70 × 0.93 × 13.34%
Apr 2, 2017 9.41% = 0.72 × 0.93 × 14.07%
Dec 31, 2016 9.19% = 0.72 × 0.93 × 13.71%
Oct 2, 2016 9.26% = 0.73 × 0.93 × 13.58%
Jul 3, 2016 9.02% = 0.74 × 0.93 × 13.20%
Apr 3, 2016 8.23% = 0.75 × 0.92 × 11.97%
Dec 31, 2015 8.92% = 0.74 × 0.92 × 13.08%
Sep 27, 2015 — = — × — × —
Jun 28, 2015 — = — × — × —
Mar 29, 2015 — = — × — × —

Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).

The primary reason for the decrease in net profit margin ratio over Q4 2019 is the decrease in effect of taxes measured by tax burden ratio.