Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Raytheon Co., profitability ratios (quarterly data)
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).
- Gross profit margin
- The gross profit margin displays a consistent upward trend from 24.4% in early 2015 to a peak of 27.66% in the fourth quarter of 2018. Following this peak, the margin slightly declines but remains elevated, finishing around 26.61% by the end of 2019. This progression indicates improving cost management or pricing power, though the recent small decrease suggests some pressure on profitability at the gross level.
- Operating profit margin
- Operating profit margin shows a steady increase from approximately 12.96% in early 2015 to a high of 16.77% by the last quarter of 2018. The margin stabilizes thereafter, maintaining a level near 16.3% through the end of 2019. This consistent improvement suggests enhanced operational efficiency or reduced operating expenses relative to revenue, contributing positively to overall profitability.
- Net profit margin
- Net profit margin improves from about 8.92% in early 2015 to a maximum of 11.47% at the end of 2019, with a notable upward movement beginning in 2017. Despite minor fluctuations, the margin exhibits a general positive trajectory, indicating effective income tax management, interest expense control, or other non-operating income factors supporting bottom-line growth.
- Return on equity (ROE)
- ROE experiences a robust increase from approximately 20.48% in early 2015 to a peak of 27.35% by the end of 2019. Although some short-term dips are observed, the long-term trend is distinctly positive, reflecting improved profitability relative to shareholders’ equity and potentially effective capital deployment and earnings generation strategies.
- Return on assets (ROA)
- The ROA rises steadily from around 7.08% in early 2015 to about 10.03% in late 2019, with a temporary dip observed in mid-2019. This upward trend indicates more efficient use of assets to generate earnings over time, reinforcing the improvements noted in other profitability metrics.
Return on Sales
Return on Investment
Gross Profit Margin
Raytheon Co., gross profit margin calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||
| Gross margin | 2,010) | 1,947) | 1,954) | 1,852) | 1,967) | 1,935) | 1,848) | 1,735) | 1,612) | 1,594) | 1,596) | 1,470) | 1,583) | 1,521) | 1,655) | 1,363) | 1,520) | 1,375) | 1,323) | 1,455) | ||||||
| Net sales | 7,842) | 7,446) | 7,159) | 6,729) | 7,360) | 6,806) | 6,625) | 6,267) | 6,783) | 6,284) | 6,281) | 6,000) | 6,238) | 6,033) | 6,035) | 5,763) | 6,328) | 5,783) | 5,848) | 5,288) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Gross profit margin1 | 26.61% | 26.90% | 27.48% | 27.62% | 27.66% | 26.92% | 26.15% | 25.52% | 24.74% | 25.17% | 25.13% | 25.63% | 25.44% | 25.08% | 24.73% | 23.53% | 24.40% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross marginQ4 2019
+ Gross marginQ3 2019
+ Gross marginQ2 2019
+ Gross marginQ1 2019)
÷ (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
= 100 × (2,010 + 1,947 + 1,954 + 1,852)
÷ (7,842 + 7,446 + 7,159 + 6,729)
= 26.61%
2 Click competitor name to see calculations.
The financial data reflects a generally positive trend in the company’s profitability and sales over the analyzed periods.
- Gross Margin (US$ in millions)
- The gross margin shows an overall upward trajectory from the beginning to the end of the period. Starting at 1,455 million USD in March 2015, it experienced fluctuations but generally increased, reaching 2,010 million USD by December 2019. The margin saw a few dips, notably in April 2017 and March 2019, but these were followed by recoveries. The most significant growth phase appears between mid-2017 and the end of 2018, suggesting improved cost management or increased pricing power during that time.
- Net Sales (US$ in millions)
- Net sales similarly exhibited growth from approximately 5,288 million USD in March 2015 to 7,842 million USD in December 2019. The net sales amounts demonstrate moderate volatility across quarters but maintain a clear rising trend. There is a noticeable acceleration in sales growth from early 2017 onwards, with the highest sales figures recorded in the last few quarters of 2019. This indicates sustained demand and expansion in sales volume or value over time.
- Gross Profit Margin (%)
- Data for gross profit margin percentage begins from December 2015 and reveals a consistent improvement over subsequent quarters. Starting at 24.4%, the gross profit margin progressively increased, peaking at 27.66% in December 2018 before a slight decline occurs toward the end of 2019. Despite the minor decrease, the margin remains above 26%, reflecting improved efficiency in production or cost control. The steady increase in this ratio suggests that the company has been able to enhance its profitability relative to sales.
In summary, the analyzed metrics point to a positive business performance trend: growing sales base, increasing gross margin values, and improving profitability ratios. Some periodic fluctuations exist, but the overall direction indicates strengthening operational efficiency and market position within the timeframe examined.
Operating Profit Margin
Raytheon Co., operating profit margin calculation (quarterly data)
| 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) | ||||||||||||||||||||||||||
| Operating income | 1,279) | 1,206) | 1,176) | 1,113) | 1,214) | 1,183) | 1,100) | 1,041) | 870) | 858) | 849) | 741) | 862) | 806) | 960) | 612) | 828) | 697) | 648) | 840) | ||||||
| Net sales | 7,842) | 7,446) | 7,159) | 6,729) | 7,360) | 6,806) | 6,625) | 6,267) | 6,783) | 6,284) | 6,281) | 6,000) | 6,238) | 6,033) | 6,035) | 5,763) | 6,328) | 5,783) | 5,848) | 5,288) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Operating profit margin1 | 16.36% | 16.41% | 16.70% | 16.75% | 16.77% | 15.84% | 14.90% | 14.12% | 13.09% | 13.35% | 13.27% | 13.86% | 13.46% | 13.27% | 12.95% | 11.74% | 12.96% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating incomeQ4 2019
+ Operating incomeQ3 2019
+ Operating incomeQ2 2019
+ Operating incomeQ1 2019)
÷ (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
= 100 × (1,279 + 1,206 + 1,176 + 1,113)
÷ (7,842 + 7,446 + 7,159 + 6,729)
= 16.36%
2 Click competitor name to see calculations.
The financial analysis over the observed periods reveals several noteworthy trends regarding profitability and sales performance. The operating income displays fluctuations initially but demonstrates a clear upward trajectory starting from early 2018 through the end of 2019. This indicates a strengthening in the company's core earnings capacity over time.
Net sales exhibited variability during the initial quarters, with periodic increases and decreases. However, beginning in the first quarter of 2018, there is a consistent upward movement in sales revenue, highlighted by increases in nearly every quarter until the end of 2019. This gradual rise suggests improving market demand or enhanced sales efforts translating into higher revenue generation.
The operating profit margin, reported as a percentage, was absent for several early periods but becomes available starting at the end of 2015. From that point on, there is a generally ascending trend in the margin, moving from just under 13% to above 16% towards the end of 2019. This improvement in margin indicates not only increased operating income but also greater efficiency or cost control relative to sales.
- Operating Income
- Initial volatility with a range from 612 million to 960 million US dollars in 2016, followed by a robust rise from 1041 million in early 2018 to a peak of 1279 million by the last quarter of 2019.
- Net Sales
- Variable performance in 2015 and 2016 around 5.7 to 6.2 billion US dollars. Starting from 2018, consistently rising sales, from approximately 6.3 billion to nearly 7.8 billion US dollars by the end of 2019.
- Operating Profit Margin
- Data available from late 2015 indicates gradual margin improvement: starting near 13% and growing steadily to a high of about 16.77% by late 2018, maintaining around 16.3% through 2019. This reflects enhanced profitability relative to sales.
Overall, the analysis highlights improved profitability and sales growth in the latter periods, supported by increasing operating margins. This suggests strengthened operational efficiency and potentially successful strategic initiatives impacting financial performance positively during the most recent quarters observed.
Net Profit Margin
Raytheon Co., net profit margin calculation (quarterly data)
| 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) | ||||||
| Net sales | 7,842) | 7,446) | 7,159) | 6,729) | 7,360) | 6,806) | 6,625) | 6,267) | 6,783) | 6,284) | 6,281) | 6,000) | 6,238) | 6,033) | 6,035) | 5,763) | 6,328) | 5,783) | 5,848) | 5,288) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| Net profit margin1 | 11.46% | 11.47% | 10.96% | 11.11% | 10.75% | 9.33% | 9.24% | 8.40% | 7.98% | 8.77% | 8.68% | 9.41% | 9.19% | 9.26% | 9.02% | 8.23% | 8.92% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Profit Margin, 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
Net profit margin = 100
× (Net income attributable to Raytheon CompanyQ4 2019
+ Net income attributable to Raytheon CompanyQ3 2019
+ Net income attributable to Raytheon CompanyQ2 2019
+ Net income attributable to Raytheon CompanyQ1 2019)
÷ (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
= 100 × (885 + 860 + 817 + 781)
÷ (7,842 + 7,446 + 7,159 + 6,729)
= 11.46%
2 Click competitor name to see calculations.
- Net Income Attributable to Raytheon Company
- The net income demonstrates a fluctuating pattern over the observed quarters. Initially, there is a moderate decrease from 551 million to 447 million between March 2015 and September 2015. A recovery period follows with income rising to 709 million by July 2016. Subsequently, income stabilizes around the 500 to 600 million range through 2016 and early 2017, then shows significant growth from late 2017 onward. The peak value is reached in December 2018 at 832 million, followed by sustained elevated levels, approaching 885 million by the end of 2019.
- Net Sales
- Net sales exhibit an overall upward trajectory during the timeframe. Beginning at 5,288 million in March 2015, sales increase steadily, with some minor fluctuations, reaching 6,628 million by late 2017. The most notable growth occurs from early 2018, with sales accelerating and culminating at 7,842 million by December 2019. This suggests a general expansion in revenue-generating activities over the five-year period.
- Net Profit Margin
- Profit margin data starts from December 2015 and shows an increasing trend. Initial margins are between 8.23% and 9.41%, hovering near 9% with some quarterly variation. From early 2018 onwards, margins improve consistently, surpassing 10% by late 2018 and reaching 11.46% at the end of 2019. This reflects enhanced profitability relative to sales, indicating improved efficiency or favorable operating conditions.
- Overall Financial Performance
- The combined analysis of net income, net sales, and net profit margin reveals a strengthening financial position. Increasing sales contribute to higher net incomes, while rising profit margins indicate better cost management or pricing power. Despite some quarters of volatility, the firm demonstrates sustained growth in both revenue and profitability metrics over the observed periods.
Return on Equity (ROE)
Raytheon Co., ROE calculation (quarterly data)
| 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) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROE1 | 27.35% | 25.34% | 25.19% | 26.11% | 25.36% | 21.84% | 22.61% | 21.01% | 20.32% | 20.03% | 19.71% | 22.03% | 21.97% | 21.38% | 20.90% | 19.28% | 20.48% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net income attributable to Raytheon CompanyQ4 2019
+ Net income attributable to Raytheon CompanyQ3 2019
+ Net income attributable to Raytheon CompanyQ2 2019
+ Net income attributable to Raytheon CompanyQ1 2019)
÷ Total Raytheon Company stockholders’ equity
= 100 × (885 + 860 + 817 + 781)
÷ 12,223 = 27.35%
2 Click competitor name to see calculations.
The financial data reveals an overall positive trend in the net income attributable to the company and the return on equity (ROE) over the observed periods. Net income figures exhibit fluctuations quarter-to-quarter but generally show an upward trajectory from 551 million USD in March 2015 to 885 million USD by the end of 2019. Notably, there are peaks in the latter part of 2018 and throughout 2019, with net income reaching above 800 million USD in multiple quarters.
Total stockholders’ equity shows a gradual increase, rising from approximately 9,707 million USD in March 2015 to a peak of 12,982 million USD in September 2019, before a slight decline to 12,223 million USD by December 2019. This indicates a strengthening equity base with some minor recent contraction.
The ROE percentage, which was not available in the initial quarters but started at 20.48% in December 2015, exhibits consistent strength and slight upward momentum, moving from just over 20% to a high of 27.35% by the end of 2019. This stability and increase in ROE suggest improving efficiency in generating profits from shareholders’ equity.
- Net Income
- Shows a general increase over the five-year horizon with some short-term variability. Strong growth is especially noticeable from 2017 onward.
- Total Stockholders’ Equity
- Demonstrates a steady growth trend suggesting accumulation of retained earnings and possible capital contributions, except for a minor decline in the final reported quarter.
- Return on Equity (ROE)
- Displays consistent performance above 20%, with a rising trend to over 27% by the latest period, indicating effective use of equity capital to generate profits.
In summary, the data indicates improving profitability and efficient equity utilization alongside growing equity capital, supporting a positive financial outlook over the observed timeframe.
Return on Assets (ROA)
Raytheon Co., ROA calculation (quarterly data)
| 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) | ||||||
| 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) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||||
| ROA1 | 9.67% | 10.03% | 9.26% | 9.68% | 9.13% | 8.20% | 7.80% | 7.05% | 6.56% | 7.18% | 7.05% | 7.66% | 7.36% | 7.60% | 7.41% | 6.77% | 7.08% | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net income attributable to Raytheon CompanyQ4 2019
+ Net income attributable to Raytheon CompanyQ3 2019
+ Net income attributable to Raytheon CompanyQ2 2019
+ Net income attributable to Raytheon CompanyQ1 2019)
÷ Total assets
= 100 × (885 + 860 + 817 + 781)
÷ 34,566 = 9.67%
2 Click competitor name to see calculations.
The financial data reveals several key trends over the observed periods. Net income attributable to the company exhibits fluctuations but generally shows an upward trajectory from 2015 through 2019. The net income in early 2015 starts at 551 million US dollars and experiences some variability, reaching a high of 885 million US dollars by the last quarter of 2019. Notably, there are peaks around mid-2016 and late 2018, indicating periods of enhanced profitability.
Total assets display a gradual increase over the analyzed quarters. Starting from approximately 27.8 billion US dollars in the first quarter of 2015, total assets steadily rise to about 34.6 billion US dollars by the last quarter of 2019. This steady increase suggests ongoing asset accumulation or acquisition, supporting potential growth or investment strategies.
Return on assets (ROA) data, though incomplete for the earliest quarters, shows consistent improvement from the first available measurement in late 2015 at 7.08% to a peak of 10.03% in the fourth quarter of 2019. This indicates enhanced efficiency in utilizing assets to generate income. The ROA exhibits steady progression with minor fluctuations, maintaining a level above 6.5% throughout the period.
- Net Income
- Fluctuates but trends upward, from 551 million USD in Q1 2015 to 885 million USD in Q4 2019.
- Shows notable peaks in Q3 2016 and Q4 2018, indicative of elevated profitability.
- Total Assets
- Gradually increase from 27.8 billion USD in Q1 2015 to 34.6 billion USD in Q4 2019.
- Suggests ongoing asset growth, possibly through investments or acquisitions.
- Return on Assets (ROA)
- Improves steadily from 7.08% in late 2015 to a high of 10.03% by Q4 2019.
- Reflects increasing efficiency in asset utilization to generate profits.
Overall, the data indicates positive financial momentum characterized by growth in net income and total assets alongside improving returns on asset base. The company appears to be enhancing profitability and asset effectiveness over the period analyzed.