Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Raytheon Co. (NYSE:RTN)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Short-term (Operating) Activity Ratios

Beginner level


Short-term Activity Ratios (Summary)

Raytheon Co., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Turnover Ratios
Inventory turnover 31.91 25.82 32.11 27.23 27.68
Receivables turnover 21.39 16.42 19.15 19.76 19.89
Payables turnover 11.92 9.97 12.56 11.81 12.53
Working capital turnover 8.87 7.03 6.37 5.66 6.31
Average No. Days
Average inventory processing period 11 14 11 13 13
Add: Average receivable collection period 17 22 19 18 18
Operating cycle 28 36 30 31 31
Less: Average payables payment period 31 37 29 31 29
Cash conversion cycle -3 -1 1 0 2

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Raytheon Co.’s inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Raytheon Co.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Raytheon Co.’s payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Raytheon Co.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Raytheon Co.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Raytheon Co.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Raytheon Co.’s number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Raytheon Co.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

Raytheon Co., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of sales, products and services 21,413  19,573  19,076  17,947  17,574 
Inventories 671  758  594  659  635 
Short-term Activity Ratio
Inventory turnover1 31.91 25.82 32.11 27.23 27.68
Benchmarks
Inventory Turnover, Competitors2
Boeing Co. 0.94 1.30 1.71 1.87 1.74
General Dynamics Corp. 5.12 4.93 4.67 7.13 7.53
Lockheed Martin Corp. 14.22 15.51 10.14 9.03 8.25
Northrop Grumman Corp. 33.95 35.63 25.45 22.95 22.16
Raytheon Technologies Corp. 5.21 4.96 4.45 4.76 4.97
Inventory Turnover, Sector
Aerospace & Defense 2.44 2.80 3.24 3.42 3.20
Inventory Turnover, Industry
Industrials 3.43 3.88 4.09 4.18 3.97

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Inventory turnover = Cost of sales, products and services ÷ Inventories
= 21,413 ÷ 671 = 31.91

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Raytheon Co.’s inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Receivables Turnover

Raytheon Co., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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 
Receivables, net 1,364  1,648  1,324  1,218  1,169 
Short-term Activity Ratio
Receivables turnover1 21.39 16.42 19.15 19.76 19.89
Benchmarks
Receivables Turnover, Competitors2
Boeing Co. 23.44 26.07 8.88 10.71 11.03
General Dynamics Corp. 11.10 9.63 8.56 8.68 9.13
Lockheed Martin Corp. 25.59 22.00 5.93 5.76 5.72
Northrop Grumman Corp. 25.52 20.78 6.49 7.43 8.28
Raytheon Technologies Corp. 5.70 4.66 4.75 4.99 5.27
Receivables Turnover, Sector
Aerospace & Defense 11.94 11.15 6.64 7.20 7.51
Receivables Turnover, Industry
Industrials 7.83 7.99 6.21 6.52 6.47

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Receivables turnover = Net sales ÷ Receivables, net
= 29,176 ÷ 1,364 = 21.39

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Raytheon Co.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Payables Turnover

Raytheon Co., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cost of sales, products and services 21,413  19,573  19,076  17,947  17,574 
Accounts payable 1,796  1,964  1,519  1,520  1,402 
Short-term Activity Ratio
Payables turnover1 11.92 9.97 12.56 11.81 12.53
Benchmarks
Payables Turnover, Competitors2
Boeing Co. 4.63 6.30 6.23 7.21 7.59
General Dynamics Corp. 10.21 9.27 7.73 9.89 12.90
Lockheed Martin Corp. 40.16 19.35 31.02 25.52 20.74
Northrop Grumman Corp. 11.94 10.68 11.95 12.05 13.95
Raytheon Technologies Corp. 5.28 4.51 4.59 5.54 5.88
Payables Turnover, Sector
Aerospace & Defense 7.25 7.26 7.47 8.53 9.02
Payables Turnover, Industry
Industrials 6.32 6.56 6.61 7.35 7.67

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Payables turnover = Cost of sales, products and services ÷ Accounts payable
= 21,413 ÷ 1,796 = 11.92

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Raytheon Co.’s payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Working Capital Turnover

Raytheon Co., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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 
Less: Current liabilities 9,791  8,288  7,348  6,427  6,126 
Working capital 3,291  3,848  3,978  4,251  3,686 
 
Net sales 29,176  27,058  25,348  24,069  23,247 
Short-term Activity Ratio
Working capital turnover1 8.87 7.03 6.37 5.66 6.31
Benchmarks
Working Capital Turnover, Competitors2
Boeing Co. 15.57 16.21 10.50 7.66 5.39
General Dynamics Corp. 13.21 10.49 5.92 12.05 14.80
Lockheed Martin Corp. 19.15 31.53 10.58 18.41 21.55
Northrop Grumman Corp. 27.05 21.40 2.75 19.99 26.83
Raytheon Technologies Corp. 26.47 16.08 7.07 8.62 13.72
Working Capital Turnover, Sector
Aerospace & Defense 18.88 16.99 7.09 10.04 9.36
Working Capital Turnover, Industry
Industrials 6.90 7.10 4.82 4.81 5.39

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Working capital turnover = Net sales ÷ Working capital
= 29,176 ÷ 3,291 = 8.87

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Raytheon Co.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Average Inventory Processing Period

Raytheon Co., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Inventory turnover 31.91 25.82 32.11 27.23 27.68
Short-term Activity Ratio (no. days)
Average inventory processing period1 11 14 11 13 13
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Boeing Co. 388 280 213 195 210
General Dynamics Corp. 71 74 78 51 48
Lockheed Martin Corp. 26 24 36 40 44
Northrop Grumman Corp. 11 10 14 16 16
Raytheon Technologies Corp. 70 74 82 77 73
Average Inventory Processing Period, Sector
Aerospace & Defense 150 130 113 107 114
Average Inventory Processing Period, Industry
Industrials 106 94 89 87 92

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 31.91 = 11

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period.

Average Receivable Collection Period

Raytheon Co., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Receivables turnover 21.39 16.42 19.15 19.76 19.89
Short-term Activity Ratio (no. days)
Average receivable collection period1 17 22 19 18 18
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Boeing Co. 16 14 41 34 33
General Dynamics Corp. 33 38 43 42 40
Lockheed Martin Corp. 14 17 62 63 64
Northrop Grumman Corp. 14 18 56 49 44
Raytheon Technologies Corp. 64 78 77 73 69
Average Receivable Collection Period, Sector
Aerospace & Defense 31 33 55 51 49
Average Receivable Collection Period, Industry
Industrials 47 46 59 56 56

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 21.39 = 17

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Raytheon Co.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Operating Cycle

Raytheon Co., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 11 14 11 13 13
Average receivable collection period 17 22 19 18 18
Short-term Activity Ratio
Operating cycle1 28 36 30 31 31
Benchmarks
Operating Cycle, Competitors2
Boeing Co. 404 294 254 229 243
General Dynamics Corp. 104 112 121 93 88
Lockheed Martin Corp. 40 41 98 103 108
Northrop Grumman Corp. 25 28 70 65 60
Raytheon Technologies Corp. 134 152 159 150 142
Operating Cycle, Sector
Aerospace & Defense 181 163 168 158 163
Operating Cycle, Industry
Industrials 153 140 148 143 148

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 11 + 17 = 28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Raytheon Co.’s operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Average Payables Payment Period

Raytheon Co., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Payables turnover 11.92 9.97 12.56 11.81 12.53
Short-term Activity Ratio (no. days)
Average payables payment period1 31 37 29 31 29
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Boeing Co. 79 58 59 51 48
General Dynamics Corp. 36 39 47 37 28
Lockheed Martin Corp. 9 19 12 14 18
Northrop Grumman Corp. 31 34 31 30 26
Raytheon Technologies Corp. 69 81 80 66 62
Average Payables Payment Period, Sector
Aerospace & Defense 50 50 49 43 40
Average Payables Payment Period, Industry
Industrials 58 56 55 50 48

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.92 = 31

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Raytheon Co.’s number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Cash Conversion Cycle

Raytheon Co., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data
Average inventory processing period 11 14 11 13 13
Average receivable collection period 17 22 19 18 18
Average payables payment period 31 37 29 31 29
Short-term Activity Ratio
Cash conversion cycle1 -3 -1 1 0 2
Benchmarks
Cash Conversion Cycle, Competitors2
Boeing Co. 325 236 195 178 195
General Dynamics Corp. 68 73 74 56 60
Lockheed Martin Corp. 31 22 86 89 90
Northrop Grumman Corp. -6 -6 39 35 34
Raytheon Technologies Corp. 65 71 79 84 80
Cash Conversion Cycle, Sector
Aerospace & Defense 131 113 119 115 123
Cash Conversion Cycle, Industry
Industrials 95 84 93 93 100

Based on: 10-K (filing date: 2020-02-12), 10-K (filing date: 2019-02-13), 10-K (filing date: 2018-02-14), 10-K (filing date: 2017-02-15), 10-K (filing date: 2016-02-10).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 11 + 1731 = -3

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Raytheon Co.’s cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.