Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
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).
- Debt to Equity
- The debt to equity ratio demonstrated a generally declining trend from March 2015 to December 2019, moving from 0.55 down to 0.39. This indicates a gradual reduction in leverage relative to shareholders' equity, suggesting a conservative approach to financing over the period. Minor fluctuations occurred in late 2016 and early 2017, but the overall trend remained downward.
- Debt to Equity (Including Operating Lease Liability)
- This metric followed a similar downward pattern to the standard debt to equity ratio, starting at 0.55 in early 2015 and decreasing to 0.45 by the end of 2019. Slight increases were observed mid-2019, indicating some variability in lease obligations, but the longer-term progression points toward lower relative debt levels including off-balance sheet liabilities.
- Debt to Capital
- The debt to capital ratio remained fairly stable with a subtle declining tendency, starting at 0.35 and decreasing to around 0.28 by the end of the studied period. This suggests a gradual strengthening of the capital structure due to reduced reliance on debt funding.
- Debt to Capital (Including Operating Lease Liability)
- Similarly, the inclusion of operating lease liabilities revealed a slight initial stability followed by a drop from 0.35 to approximately 0.31 over the period. This trend aligns with the traditional debt to capital ratio and shows a cautious management of capital that incorporates lease liabilities.
- Debt to Assets
- This ratio displayed a subtle decline over time, beginning at 0.19 and moving down to 0.14 by December 2019. The reduction indicates a decreasing proportion of debt relative to total assets, which may point to improved asset funding through equity or retained earnings.
- Debt to Assets (Including Operating Lease Liability)
- Including operating lease liabilities, the ratio fluctuated somewhat more but still showed a modest decrease from 0.19 to 0.16 overall. There was a slight uptick in mid-2019, perhaps reflecting increased lease-related liabilities, but the broad trend remains consistent with lower asset leverage.
- Financial Leverage
- Financial leverage ratios varied within a range, starting around 2.86 and dipping below 2.6 in late 2018 and 2019 before a slight rebound to 2.83 by the end of 2019. This indicates some shifts in the level of total assets relative to equity, with a general tendency toward reduced leverage over the period, notwithstanding some short-term volatility.
- Interest Coverage
- Interest coverage improved markedly from the first available data point in late 2015, rising steadily from 12.96 to 23.14 by the end of 2019. This improvement reflects a stronger ability to service interest expenses, possibly due to increased earnings, reduced interest expense, or both, and signals enhanced financial health and reduced credit risk.
Debt Ratios
Coverage Ratios
Debt to Equity
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Commercial paper and current portion of long-term debt | 1,499) | 500) | 800) | 800) | 300) | 300) | 300) | 300) | 300) | 300) | 300) | 251) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Long-term debt, excluding current portion | 3,261) | 4,258) | 4,257) | 4,256) | 4,755) | 4,753) | 4,752) | 4,751) | 4,750) | 4,749) | 4,747) | 5,086) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total debt | 4,760) | 4,758) | 5,057) | 5,056) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total Raytheon Company stockholders’ equity | 12,223) | 12,982) | 12,204) | 11,708) | 11,472) | 11,310) | 10,607) | 10,237) | 9,963) | 10,857) | 10,815) | 10,384) | 10,066) | 10,467) | 10,316) | 10,124) | 10,128) | 10,148) | 10,056) | 9,707) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to equity1 | 0.39 | 0.37 | 0.41 | 0.43 | 0.44 | 0.45 | 0.48 | 0.49 | 0.51 | 0.47 | 0.47 | 0.51 | 0.53 | 0.51 | 0.52 | 0.53 | 0.53 | 0.53 | 0.53 | 0.55 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Equity, Competitors2 | ||||||||||||||||||||||||||
Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Caterpillar Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
GE Aerospace | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Honeywell International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Lockheed Martin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Debt to equity = Total debt ÷ Total Raytheon Company stockholders’ equity
= 4,760 ÷ 12,223 = 0.39
2 Click competitor name to see calculations.
- Total debt
- The total debt remained relatively stable around 5,330 million US dollars from the first quarter of 2015 through the fourth quarter of 2016. Beginning in early 2017, a gradual decline is observable with the debt amount decreasing from approximately 5,337 million US dollars in the first quarter of 2017 to 4,760 million US dollars by the end of 2019. Notably, the most significant reduction occurred in the latter half of 2019, where total debt fell by approximately 300 million US dollars.
- Total stockholders’ equity
- Stockholders’ equity showcased a general upward trend over the entire period. Starting from 9,707 million US dollars at the end of March 2015, it steadily increased, reaching a peak of 12,982 million US dollars by the third quarter of 2019. There were minor fluctuations, such as slight declines occurring at the end of 2016 and towards the end of 2017, yet the overall trajectory remained positive. The increase reflects consistent growth in the company’s net assets over nearly five years.
- Debt to equity ratio
- This ratio mirrored the decline in total debt relative to the increasing equity. Initially fluctuating slightly around 0.53 to 0.55 from 2015 to early 2016, the ratio gradually decreased over subsequent quarters. By the fourth quarter of 2019, the debt to equity ratio reached its lowest point at approximately 0.39, indicating a stronger equity position relative to debt. The decline in this ratio suggests an improvement in financial leverage and possibly reduced financial risk over the period analyzed.
- Overall analysis
- The data indicates solid financial strengthening driven primarily by increases in stockholders’ equity coupled with a modest reduction in debt levels starting in early 2017. The decreasing debt to equity ratio reflects improved capital structure stability and enhanced shareholder value. These trends suggest the company has been focusing on deleveraging while simultaneously growing its equity base, which may support future financing flexibility and resilience.
Debt to Equity (including Operating Lease Liability)
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
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Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Commercial paper and current portion of long-term debt | 1,499) | 500) | 800) | 800) | 300) | 300) | 300) | 300) | 300) | 300) | 300) | 251) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Long-term debt, excluding current portion | 3,261) | 4,258) | 4,257) | 4,256) | 4,755) | 4,753) | 4,752) | 4,751) | 4,750) | 4,749) | 4,747) | 5,086) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total debt | 4,760) | 4,758) | 5,057) | 5,056) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Operating lease liabilities, noncurrent | 706) | 692) | 720) | 652) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Total debt (including operating lease liability) | 5,466) | 5,450) | 5,777) | 5,708) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total Raytheon Company stockholders’ equity | 12,223) | 12,982) | 12,204) | 11,708) | 11,472) | 11,310) | 10,607) | 10,237) | 9,963) | 10,857) | 10,815) | 10,384) | 10,066) | 10,467) | 10,316) | 10,124) | 10,128) | 10,148) | 10,056) | 9,707) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to equity (including operating lease liability)1 | 0.45 | 0.42 | 0.47 | 0.49 | 0.44 | 0.45 | 0.48 | 0.49 | 0.51 | 0.47 | 0.47 | 0.51 | 0.53 | 0.51 | 0.52 | 0.53 | 0.53 | 0.53 | 0.53 | 0.55 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Raytheon Company stockholders’ equity
= 5,466 ÷ 12,223 = 0.45
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the capital structure metrics over the recorded periods.
- Total Debt (including operating lease liability)
- The total debt figure remains relatively stable around the 5,300 million USD mark from early 2015 through early 2017, with minimal fluctuations. Starting in the second quarter of 2017, there is a notable decline to approximately 5,050 million USD, which remains steady through early 2018. However, from the first quarter of 2019, total debt increases significantly, reaching a peak of about 5,777 million USD in mid-2019 before declining slightly by the end of 2019.
- Total Stockholders’ Equity
- Stockholders’ equity exhibits a general upward trend across the entire timeframe. Starting near 9,700 million USD in the first quarter of 2015, it increases steadily with intermittent fluctuations, surpassing the 10,000 million USD mark in late 2015 and early 2016. The upward movement continues, with some periods of stagnation and mild declines, particularly at the end of 2016 and 2017. From 2018 to the end of 2019, equity increases more markedly, reaching a peak just shy of 13,000 million USD in the third quarter of 2019 before a slight reduction by the end of 2019.
- Debt to Equity Ratio (including operating lease liability)
- The debt-to-equity ratio shows an overall declining trend over the observed quarters. Initially, in early 2015, the ratio is around 0.55, gradually decreasing to approximately 0.47 by mid-2017. This decline indicates an improvement in leverage, suggesting that equity growth outpaced debt accumulation during this phase. There is a slight increase in the ratio towards early 2018, followed by a continued downward trend throughout 2018, reaching a low near 0.42 in late 2019. Despite the increase in total debt during 2019, the ratio remains lower than earlier periods, reflecting stronger equity growth relative to debt.
In summary, the data presents a picture of stable debt levels with an improving equity base over several years, resulting in a reduced leverage ratio. The notable rise in debt in early 2019 is tempered by a corresponding and more pronounced increase in equity, maintaining a favorable debt-to-equity position. This trend could be interpreted as a strengthening of the company’s financial stability and capital structure through increased equity financing or retained earnings growth relative to debt obligations.
Debt to Capital
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Commercial paper and current portion of long-term debt | 1,499) | 500) | 800) | 800) | 300) | 300) | 300) | 300) | 300) | 300) | 300) | 251) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Long-term debt, excluding current portion | 3,261) | 4,258) | 4,257) | 4,256) | 4,755) | 4,753) | 4,752) | 4,751) | 4,750) | 4,749) | 4,747) | 5,086) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total debt | 4,760) | 4,758) | 5,057) | 5,056) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total Raytheon Company stockholders’ equity | 12,223) | 12,982) | 12,204) | 11,708) | 11,472) | 11,310) | 10,607) | 10,237) | 9,963) | 10,857) | 10,815) | 10,384) | 10,066) | 10,467) | 10,316) | 10,124) | 10,128) | 10,148) | 10,056) | 9,707) | ||||||
Total capital | 16,983) | 17,740) | 17,261) | 16,764) | 16,527) | 16,363) | 15,659) | 15,288) | 15,013) | 15,906) | 15,862) | 15,721) | 15,401) | 15,801) | 15,649) | 15,456) | 15,458) | 15,482) | 15,389) | 15,038) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to capital1 | 0.28 | 0.27 | 0.29 | 0.30 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.32 | 0.32 | 0.34 | 0.35 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.35 | 0.35 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Capital, Competitors2 | ||||||||||||||||||||||||||
Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Caterpillar Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
GE Aerospace | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Honeywell International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Lockheed Martin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,760 ÷ 16,983 = 0.28
2 Click competitor name to see calculations.
The analysis reveals several key trends regarding the debt and capital structure over the observed periods.
- Total Debt
- Total debt remained relatively stable from the first quarter of 2015 through early 2019, fluctuating slightly around the $5,300 million mark. A noticeable decrease begins in mid-2017, with total debt declining more consistently from 2017 to the end of 2019, reaching approximately $4,760 million by the final period. This decline indicates a reduction in the company's leverage over time.
- Total Capital
- Total capital showed a general upward trend throughout the periods analyzed, increasing from about $15,000 million in early 2015 to a peak exceeding $17,700 million in late 2019. While some fluctuations occurred, especially a temporary dip towards the end of 2017 and early 2018, the overall trajectory was positive, suggesting growth in the company's capital base.
- Debt to Capital Ratio
- The debt to capital ratio exhibited a gradual decline during the observed timeframe. Starting around 0.35 in early 2015, it decreased steadily to approximately 0.27-0.28 by the end of 2019. This declining ratio aligns with the observed reduction in total debt and growth in total capital, reflecting an improving leverage position and potentially a more conservative financing approach.
Overall, the data indicates a strategic movement towards strengthening the capital structure by reducing reliance on debt while expanding total capital. This shifting balance might imply enhanced financial stability or a repositioning of the company’s financing strategy over the analyzed quarters.
Debt to Capital (including Operating Lease Liability)
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Commercial paper and current portion of long-term debt | 1,499) | 500) | 800) | 800) | 300) | 300) | 300) | 300) | 300) | 300) | 300) | 251) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Long-term debt, excluding current portion | 3,261) | 4,258) | 4,257) | 4,256) | 4,755) | 4,753) | 4,752) | 4,751) | 4,750) | 4,749) | 4,747) | 5,086) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total debt | 4,760) | 4,758) | 5,057) | 5,056) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Operating lease liabilities, noncurrent | 706) | 692) | 720) | 652) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Total debt (including operating lease liability) | 5,466) | 5,450) | 5,777) | 5,708) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total Raytheon Company stockholders’ equity | 12,223) | 12,982) | 12,204) | 11,708) | 11,472) | 11,310) | 10,607) | 10,237) | 9,963) | 10,857) | 10,815) | 10,384) | 10,066) | 10,467) | 10,316) | 10,124) | 10,128) | 10,148) | 10,056) | 9,707) | ||||||
Total capital (including operating lease liability) | 17,689) | 18,432) | 17,981) | 17,416) | 16,527) | 16,363) | 15,659) | 15,288) | 15,013) | 15,906) | 15,862) | 15,721) | 15,401) | 15,801) | 15,649) | 15,456) | 15,458) | 15,482) | 15,389) | 15,038) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to capital (including operating lease liability)1 | 0.31 | 0.30 | 0.32 | 0.33 | 0.31 | 0.31 | 0.32 | 0.33 | 0.34 | 0.32 | 0.32 | 0.34 | 0.35 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.35 | 0.35 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,466 ÷ 17,689 = 0.31
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals that the total debt, including operating lease liabilities, remained relatively stable from March 2015 through December 2018, fluctuating marginally around the 5330-5050 million USD range. Thereafter, a noticeable increase occurred beginning in March 2019, with total debt rising from approximately 5708 million USD to a peak near 5777 million USD in June 2019 before slightly decreasing to 5466 million USD by the end of December 2019.
Regarding total capital, inclusive of operating lease liabilities, there is a clear upward trend demonstrated over the entire period. From a starting point around 15038 million USD in early 2015, total capital increased steadily through the years, reaching a maximum of approximately 18432 million USD by September 2019. However, a modest decline was observed in the last quarter of 2019, with total capital decreasing to 17689 million USD by year-end.
The debt to capital ratio exhibits stability with minor fluctuations, primarily oscillating between 0.30 and 0.35. Initially, the ratio was near 0.35 in early 2015, dipping gradually to a low near 0.30 in late 2019. This declining ratio trend suggests a slight improvement in the company's capital structure, with debt representing a decreasing proportion of total capital over time, despite the increase in absolute debt levels during 2019. The overall ratio maintenance below 0.35 reflects a moderate leverage position throughout the periods analyzed.
- Total Debt
- Stable from 2015 to late 2018, notable increase in 2019 with a peak mid-year, followed by a slight decline at year-end.
- Total Capital
- Consistent upward trend from 2015 to third quarter 2019, with a minor decrease in the final quarter of 2019.
- Debt to Capital Ratio
- Generally steady with small declines over time, indicating a gradual reduction in leverage relative to capital.
Debt to Assets
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Commercial paper and current portion of long-term debt | 1,499) | 500) | 800) | 800) | 300) | 300) | 300) | 300) | 300) | 300) | 300) | 251) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Long-term debt, excluding current portion | 3,261) | 4,258) | 4,257) | 4,256) | 4,755) | 4,753) | 4,752) | 4,751) | 4,750) | 4,749) | 4,747) | 5,086) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total debt | 4,760) | 4,758) | 5,057) | 5,056) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total assets | 34,566) | 32,817) | 33,186) | 31,576) | 31,864) | 30,134) | 30,738) | 30,497) | 30,860) | 30,278) | 30,229) | 29,869) | 30,052) | 29,452) | 29,098) | 28,829) | 29,281) | 29,249) | 28,437) | 27,798) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to assets1 | 0.14 | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.19 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Assets, Competitors2 | ||||||||||||||||||||||||||
Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Caterpillar Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
GE Aerospace | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Honeywell International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Lockheed Martin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,760 ÷ 34,566 = 0.14
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's debt and asset management over the examined periods.
- Total Debt
- Total debt remained relatively stable from March 2015 through December 2016, fluctuating narrowly around the 5,330 to 5,350 million USD range. Starting in early 2017, total debt showed a gradual but consistent decline, dropping from 5,337 million USD in April 2017 to 4,760 million USD by December 2019. This trend indicates a modest deleveraging effort over the latter half of the observed time frame.
- Total Assets
- Total assets exhibited an overall upward trend throughout the entire period. Beginning at approximately 27,798 million USD in March 2015, assets generally increased, reaching 34,566 million USD by December 2019. Despite some minor fluctuations, the asset base experienced growth of nearly 24%, suggesting ongoing expansion or accumulation of resources.
- Debt to Assets Ratio
- The debt-to-assets ratio demonstrated a consistent decrease over time. Initially, the ratio hovered around 0.18 to 0.19 from early 2015 to late 2016. From early 2017 onward, the ratio steadily declined from 0.18 down to approximately 0.14 by the end of 2019. This decline corresponds with the company's stable or slightly reducing total debt alongside growing assets, reflecting improved financial leverage and possibly reduced financial risk.
Overall, the company strengthened its balance sheet by gently decreasing its debt levels while expanding its total asset base. The decline in the debt-to-assets ratio signals enhanced solvency and a more conservative capital structure as of the latest reported quarters.
Debt to Assets (including Operating Lease Liability)
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Commercial paper and current portion of long-term debt | 1,499) | 500) | 800) | 800) | 300) | 300) | 300) | 300) | 300) | 300) | 300) | 251) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Long-term debt, excluding current portion | 3,261) | 4,258) | 4,257) | 4,256) | 4,755) | 4,753) | 4,752) | 4,751) | 4,750) | 4,749) | 4,747) | 5,086) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total debt | 4,760) | 4,758) | 5,057) | 5,056) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Operating lease liabilities, noncurrent | 706) | 692) | 720) | 652) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
Total debt (including operating lease liability) | 5,466) | 5,450) | 5,777) | 5,708) | 5,055) | 5,053) | 5,052) | 5,051) | 5,050) | 5,049) | 5,047) | 5,337) | 5,335) | 5,334) | 5,333) | 5,332) | 5,330) | 5,334) | 5,333) | 5,331) | ||||||
Total assets | 34,566) | 32,817) | 33,186) | 31,576) | 31,864) | 30,134) | 30,738) | 30,497) | 30,860) | 30,278) | 30,229) | 29,869) | 30,052) | 29,452) | 29,098) | 28,829) | 29,281) | 29,249) | 28,437) | 27,798) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Debt to assets (including operating lease liability)1 | 0.16 | 0.17 | 0.17 | 0.18 | 0.16 | 0.17 | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.19 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,466 ÷ 34,566 = 0.16
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals a relatively stable debt level when considering the total debt including operating lease liabilities. The total debt remains consistently around the 5,300 to 5,500 million US$ range throughout most of the periods, with slight fluctuations observed in 2017 and 2019. Notably, there is a decrease in total debt during mid-2017, followed by an increase in the first half of 2019, before a mild reduction by the end of 2019.
Total assets demonstrate a generally upward trend over the complete period, starting at approximately 27,798 million US$ in early 2015 and rising to about 34,566 million US$ by the final quarter of 2019. This indicates an expansion in asset base, though with some periods of minor decline or leveling off, such as in early 2018 and late 2019.
The debt to assets ratio, which measures leverage relative to asset size, shows a gradual decline over the given time frame. Beginning at approximately 0.19 in early 2015, the ratio falls to around 0.16 by the end of 2019. This decrease suggests a reduction in leverage or more rapid asset growth relative to debt, signaling a marginal improvement in the company’s financial structure and potential risk profile.
- Total Debt (including operating lease liability)
- Remains stable around 5,300-5,500 million US$, with minor fluctuations.
- Total Assets
- Shows consistent growth from ~27,800 million US$ to ~34,600 million US$ over the period.
- Debt to Assets Ratio
- Declines steadily from 0.19 to 0.16, indicating decreasing financial leverage.
Financial Leverage
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Total assets | 34,566) | 32,817) | 33,186) | 31,576) | 31,864) | 30,134) | 30,738) | 30,497) | 30,860) | 30,278) | 30,229) | 29,869) | 30,052) | 29,452) | 29,098) | 28,829) | 29,281) | 29,249) | 28,437) | 27,798) | ||||||
Total Raytheon Company stockholders’ equity | 12,223) | 12,982) | 12,204) | 11,708) | 11,472) | 11,310) | 10,607) | 10,237) | 9,963) | 10,857) | 10,815) | 10,384) | 10,066) | 10,467) | 10,316) | 10,124) | 10,128) | 10,148) | 10,056) | 9,707) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Financial leverage1 | 2.83 | 2.53 | 2.72 | 2.70 | 2.78 | 2.66 | 2.90 | 2.98 | 3.10 | 2.79 | 2.80 | 2.88 | 2.99 | 2.81 | 2.82 | 2.85 | 2.89 | 2.88 | 2.83 | 2.86 | ||||||
Benchmarks | ||||||||||||||||||||||||||
Financial Leverage, Competitors2 | ||||||||||||||||||||||||||
Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Caterpillar Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
GE Aerospace | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Honeywell International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Lockheed Martin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
RTX Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Financial leverage = Total assets ÷ Total Raytheon Company stockholders’ equity
= 34,566 ÷ 12,223 = 2.83
2 Click competitor name to see calculations.
The data reveal notable trends in the financial position over the analyzed periods. Total assets show a general upward trajectory, starting at approximately $27.8 billion and increasing to about $34.6 billion by the end of the period. This suggests a consistent growth in the company's asset base, despite some fluctuations observed around the middle of the timeline.
Regarding stockholders' equity, the figures also display an overall increasing trend, rising from roughly $9.7 billion to just over $12.2 billion. This growth in equity indicates strengthening capitalization, although some volatility is evident, particularly toward the end of the timeline.
- Financial leverage
- The financial leverage ratio fluctuates throughout the periods, starting at 2.86 and demonstrating variations between approximately 2.53 and 3.10. Noteworthy is a peak around the end of 2017 followed by a decline towards the end of 2019. The diminishing leverage ratio in the latter periods implies a relative decrease in reliance on debt financing compared to equity, reflecting a potentially more conservative financial structure.
In summary, the data suggest steady asset growth and increasing equity, coupled with a somewhat variable but generally decreasing financial leverage. These trends indicate an expansion of the company's asset base supported by rising net worth and a cautious approach to debt management in more recent quarters.
Interest Coverage
Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
Net income attributable to Raytheon Company | 885) | 860) | 817) | 781) | 832) | 644) | 800) | 633) | 393) | 572) | 553) | 506) | 544) | 529) | 709) | 429) | 571) | 447) | 505) | 551) | ||||||
Add: Net income attributable to noncontrolling interest | (4) | —) | (4) | (6) | (5) | (3) | (9) | (10) | (6) | (5) | (6) | (6) | (3) | (5) | (5) | (24) | (4) | (4) | (2) | 3) | ||||||
Less: Income (loss) from discontinued operations, net of tax | 2) | (1) | —) | —) | (1) | —) | 1) | (1) | —) | (1) | —) | 3) | —) | 1) | (1) | 1) | 13) | (1) | 1) | —) | ||||||
Add: Income tax expense | 185) | 175) | 152) | 146) | 99) | (5) | 37) | 133) | 447) | 248) | 221) | 198) | 266) | 233) | 202) | 156) | 220) | 189) | 90) | 234) | ||||||
Add: Interest expense | 46) | 45) | 45) | 44) | 46) | 45) | 46) | 47) | 48) | 48) | 51) | 58) | 58) | 58) | 58) | 58) | 58) | 58) | 59) | 58) | ||||||
Earnings before interest and tax (EBIT) | 1,110) | 1,081) | 1,010) | 965) | 973) | 681) | 873) | 804) | 882) | 864) | 819) | 753) | 865) | 814) | 965) | 618) | 832) | 691) | 651) | 846) | ||||||
Solvency Ratio | ||||||||||||||||||||||||||
Interest coverage1 | 23.14 | 22.38 | 20.16 | 19.29 | 18.10 | 17.42 | 18.11 | 17.37 | 16.19 | 15.35 | 14.45 | 14.64 | 14.06 | 13.92 | 13.39 | 11.98 | 12.96 | — | — | — | ||||||
Benchmarks | ||||||||||||||||||||||||||
Interest Coverage, Competitors2 | ||||||||||||||||||||||||||
Boeing Co. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Caterpillar Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Eaton Corp. plc | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
GE Aerospace | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Honeywell International Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Lockheed Martin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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).
1 Q4 2019 Calculation
Interest coverage
= (EBITQ4 2019
+ EBITQ3 2019
+ EBITQ2 2019
+ EBITQ1 2019)
÷ (Interest expenseQ4 2019
+ Interest expenseQ3 2019
+ Interest expenseQ2 2019
+ Interest expenseQ1 2019)
= (1,110 + 1,081 + 1,010 + 965)
÷ (46 + 45 + 45 + 44)
= 23.14
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the earnings before interest and tax (EBIT), interest expense, and interest coverage ratio over the observed periods.
- Earnings Before Interest and Tax (EBIT)
- The EBIT values demonstrate fluctuations throughout the quarters, starting at 846 million US dollars in the first quarter of 2015 and experiencing a notable decline to 618 million by the first quarter of 2016. Subsequent quarters within 2016 show recovery with peaks reaching 965 million US dollars. Afterward, the EBIT figures vary but generally maintain a positive trajectory, climaxing at 1,110 million in the last quarter of 2019. This indicates an overall increasing trend in operating profitability with intermittent periods of decline and recovery.
- Interest Expense
- The interest expense remains relatively stable across all quarters, consistently hovering between 44 and 59 million US dollars. There is a slight downward trend noticeable from mid-2017 onwards, where figures decline from approximately 58 million to the mid-40s million range by the end of 2019. This suggests effective management of interest-related costs or changes in debt structure or interest rates.
- Interest Coverage Ratio
- The interest coverage ratio shows a continuous and steady improvement over the reported periods. Starting from around 12.96 in late 2015, it increases consistently to reach a substantial 23.14 by the last quarter of 2019. The improvement in this ratio reflects enhanced ability to meet interest obligations from operating earnings, driven by rising EBIT and stable or slightly declining interest expenses. This stability and growth in interest coverage indicate strengthening financial health and reduced risk related to debt servicing.
In summary, the data reflects an overall strengthening financial position marked by increasing operating profitability and robust interest coverage. Despite some volatility in EBIT, the consistent control over interest expenses and the marked improvement in interest coverage portray a well-managed financial strategy over the examined periods.