Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Raytheon Co., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Raytheon Co. net fixed asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Raytheon Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Raytheon Co. total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Raytheon Co. equity turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Net Fixed Asset Turnover
Raytheon Co., net fixed asset turnover 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) | ||||||
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Property, plant and equipment, net | 3,353) | 2,840) | 2,439) | 2,166) | 2,005) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 8.70 | 9.53 | 10.39 | 11.11 | 11.59 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 6.12 | — | — | — | — | |
| Caterpillar Inc. | 3.93 | — | — | — | — | |
| Cummins Inc. | 5.55 | — | — | — | — | |
| Eaton Corp. plc | 6.12 | — | — | — | — | |
| General Electric Co. | 2.02 | — | — | — | — | |
| Honeywell International Inc. | 6.89 | — | — | — | — | |
| Lockheed Martin Corp. | 9.07 | — | — | — | — | |
| RTX Corp. | 6.04 | — | — | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 4.29 | — | — | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 2.82 | — | — | — | — | |
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
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 29,176 ÷ 3,353 = 8.70
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Raytheon Co. net fixed asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Raytheon Co., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Property, plant and equipment, net | 3,353) | 2,840) | 2,439) | 2,166) | 2,005) | |
| Operating lease right-of-use assets | 875) | —) | —) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 4,228) | 2,840) | 2,439) | 2,166) | 2,005) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 6.90 | 9.53 | 10.39 | 11.11 | 11.59 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 5.59 | — | — | — | — | |
| Caterpillar Inc. | 3.75 | — | — | — | — | |
| Cummins Inc. | 4.97 | — | — | — | — | |
| Eaton Corp. plc | 5.44 | — | — | — | — | |
| General Electric Co. | 1.89 | — | — | — | — | |
| Honeywell International Inc. | 6.12 | — | — | — | — | |
| Lockheed Martin Corp. | 7.88 | — | — | — | — | |
| RTX Corp. | 5.02 | — | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 3.90 | — | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.62 | — | — | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 29,176 ÷ 4,228 = 6.90
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Raytheon Co. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Total Asset Turnover
Raytheon Co., total asset turnover 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) | ||||||
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Total assets | 34,566) | 31,864) | 30,860) | 30,052) | 29,281) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.84 | 0.85 | 0.82 | 0.80 | 0.79 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.57 | — | — | — | — | |
| Caterpillar Inc. | 0.65 | — | — | — | — | |
| Cummins Inc. | 1.19 | — | — | — | — | |
| Eaton Corp. plc | 0.65 | — | — | — | — | |
| General Electric Co. | 0.33 | — | — | — | — | |
| Honeywell International Inc. | 0.63 | — | — | — | — | |
| Lockheed Martin Corp. | 1.26 | — | — | — | — | |
| RTX Corp. | 0.55 | — | — | — | — | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.56 | — | — | — | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.62 | — | — | — | — | |
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
Total asset turnover = Net sales ÷ Total assets
= 29,176 ÷ 34,566 = 0.84
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Raytheon Co. total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Equity Turnover
Raytheon Co., equity turnover 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) | ||||||
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Total Raytheon Company stockholders’ equity | 12,223) | 11,472) | 9,963) | 10,066) | 10,128) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.39 | 2.36 | 2.54 | 2.39 | 2.30 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 3.48 | — | — | — | — | |
| Cummins Inc. | 3.14 | — | — | — | — | |
| Eaton Corp. plc | 1.33 | — | — | — | — | |
| General Electric Co. | 3.09 | — | — | — | — | |
| Honeywell International Inc. | 1.98 | — | — | — | — | |
| Lockheed Martin Corp. | 19.13 | — | — | — | — | |
| RTX Corp. | 1.84 | — | — | — | — | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 3.57 | — | — | — | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 3.51 | — | — | — | — | |
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
Equity turnover = Net sales ÷ Total Raytheon Company stockholders’ equity
= 29,176 ÷ 12,223 = 2.39
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Raytheon Co. equity turnover ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |