Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Raytheon Co., liquidity ratios
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.34 | 1.46 | 1.54 | 1.66 | 1.60 | |
| Quick ratio | 1.20 | 1.31 | 1.36 | 1.49 | 1.43 | |
| Cash ratio | 0.44 | 0.44 | 0.46 | 0.53 | 0.52 |
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Raytheon Co. current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Raytheon Co. quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Raytheon Co. cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Current Ratio
Raytheon Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 13,082) | 12,136) | 11,326) | 10,678) | 9,812) | |
| Current liabilities | 9,791) | 8,288) | 7,348) | 6,427) | 6,126) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.34 | 1.46 | 1.54 | 1.66 | 1.60 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Boeing Co. | 1.05 | — | — | — | — | |
| Caterpillar Inc. | 1.47 | — | — | — | — | |
| Cummins Inc. | 1.50 | — | — | — | — | |
| Eaton Corp. plc | 1.70 | — | — | — | — | |
| General Electric Co. | 1.16 | — | — | — | — | |
| Honeywell International Inc. | 1.34 | — | — | — | — | |
| Lockheed Martin Corp. | 1.22 | — | — | — | — | |
| RTX Corp. | 1.08 | — | — | — | — | |
| Current Ratio, Sector | ||||||
| Capital Goods | 1.17 | — | — | — | — | |
| Current Ratio, Industry | ||||||
| Industrials | 1.20 | — | — | — | — | |
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).
1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,082 ÷ 9,791 = 1.34
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Raytheon Co. current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Raytheon Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,292) | 3,608) | 3,103) | 3,303) | 2,328) | |
| Short-term investments | —) | —) | 297) | 100) | 872) | |
| Receivables, net | 1,364) | 1,648) | 1,324) | 1,218) | 1,169) | |
| Contract assets | 6,122) | 5,594) | 5,247) | 4,984) | 4,395) | |
| Total quick assets | 11,778) | 10,850) | 9,971) | 9,605) | 8,764) | |
| Current liabilities | 9,791) | 8,288) | 7,348) | 6,427) | 6,126) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.20 | 1.31 | 1.36 | 1.49 | 1.43 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Boeing Co. | 0.23 | — | — | — | — | |
| Caterpillar Inc. | 0.98 | — | — | — | — | |
| Cummins Inc. | 0.82 | — | — | — | — | |
| Eaton Corp. plc | 0.78 | — | — | — | — | |
| General Electric Co. | 0.86 | — | — | — | — | |
| Honeywell International Inc. | 0.99 | — | — | — | — | |
| Lockheed Martin Corp. | 0.93 | — | — | — | — | |
| RTX Corp. | 0.73 | — | — | — | — | |
| Quick Ratio, Sector | ||||||
| Capital Goods | 0.65 | — | — | — | — | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.71 | — | — | — | — | |
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).
1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 11,778 ÷ 9,791 = 1.20
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Raytheon Co. quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Raytheon Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,292) | 3,608) | 3,103) | 3,303) | 2,328) | |
| Short-term investments | —) | —) | 297) | 100) | 872) | |
| Total cash assets | 4,292) | 3,608) | 3,400) | 3,403) | 3,200) | |
| Current liabilities | 9,791) | 8,288) | 7,348) | 6,427) | 6,126) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.44 | 0.44 | 0.46 | 0.53 | 0.52 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Boeing Co. | 0.10 | — | — | — | — | |
| Caterpillar Inc. | 0.31 | — | — | — | — | |
| Cummins Inc. | 0.23 | — | — | — | — | |
| Eaton Corp. plc | 0.12 | — | — | — | — | |
| General Electric Co. | 0.60 | — | — | — | — | |
| Honeywell International Inc. | 0.58 | — | — | — | — | |
| Lockheed Martin Corp. | 0.11 | — | — | — | — | |
| RTX Corp. | 0.21 | — | — | — | — | |
| Cash Ratio, Sector | ||||||
| Capital Goods | 0.31 | — | — | — | — | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.34 | — | — | — | — | |
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).
1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,292 ÷ 9,791 = 0.44
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Raytheon Co. cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |