Microsoft Excel LibreOffice Calc

Raytheon Technologies Corp. (NYSE:RTX)


Analysis of Property, Plant and Equipment

Advanced level


Property, Plant and Equipment Disclosure

Raytheon Technologies Corp., balance sheet: property, plant and equipment

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Land 447  425  412  392  384 
Buildings and improvements 6,673  6,486  5,727  5,180  5,030 
Machinery, tools and equipment 16,353  15,119  13,476  12,471  11,717 
Other, including assets under construction 2,213  2,054  1,749  1,426  1,363 
Fixed assets, gross 25,686  24,084  21,364  19,469  18,494 
Accumulated depreciation (12,931) (11,787) (11,178) (10,311) (9,762)
Fixed assets, net 12,755  12,297  10,186  9,158  8,732 

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

Item Description The company
Fixed assets, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Raytheon Technologies Corp.’s fixed assets, gross increased from 2017 to 2018 and from 2018 to 2019.
Fixed assets, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Raytheon Technologies Corp.’s fixed assets, net increased from 2017 to 2018 and from 2018 to 2019.

Asset Age Ratios (Summary)

Raytheon Technologies Corp., asset age ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Average age ratio 51.23% 49.82% 53.35% 54.05% 53.90%
Estimated total useful life (years) 17 19 18 17 17
Estimated age, time elapsed since purchase (years) 9 10 9 9 9
Estimated remaining life (years) 8 10 8 8 8

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Raytheon Technologies Corp.’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Raytheon Technologies Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Raytheon Technologies Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Estimated remaining life Raytheon Technologies Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Average Age

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 12,931  11,787  11,178  10,311  9,762 
Fixed assets, gross 25,686  24,084  21,364  19,469  18,494 
Land 447  425  412  392  384 
Asset Age Ratio
Average age1 51.23% 49.82% 53.35% 54.05% 53.90%

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

2019 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Fixed assets, gross – Land)
= 100 × 12,931 ÷ (25,686447) = 51.23%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Raytheon Technologies Corp.’s average age ratio of depreciable property, plant and equipment improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Estimated Total Useful Life

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)
Fixed assets, gross 25,686  24,084  21,364  19,469  18,494 
Land 447  425  412  392  384 
Depreciation expense 1,506  1,240  1,178  1,105  1,068 
Asset Age Ratio (Years)
Estimated total useful life1 17 19 18 17 17

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

2019 Calculations

1 Estimated total useful life = (Fixed assets, gross – Land) ÷ Depreciation expense
= (25,686447) ÷ 1,506 = 17

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Raytheon Technologies Corp.’s estimated total useful life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Estimated Age, Time Elapsed since Purchase

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Accumulated depreciation 12,931  11,787  11,178  10,311  9,762 
Depreciation expense 1,506  1,240  1,178  1,105  1,068 
Asset Age Ratio (Years)
Time elapsed since purchase1 9 10 9 9 9

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

2019 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 12,931 ÷ 1,506 = 9

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Raytheon Technologies Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Estimated Remaining Life

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)
Fixed assets, net 12,755  12,297  10,186  9,158  8,732 
Land 447  425  412  392  384 
Depreciation expense 1,506  1,240  1,178  1,105  1,068 
Asset Age Ratio (Years)
Estimated remaining life1 8 10 8 8 8

Based on: 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-11).

2019 Calculations

1 Estimated remaining life = (Fixed assets, net – Land) ÷ Depreciation expense
= (12,755447) ÷ 1,506 = 8

Asset age ratio Description The company
Estimated remaining life Raytheon Technologies Corp.’s estimated remaining life of depreciable property, plant and equipment increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.