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

Raytheon Technologies Corp. (NYSE:RTX)

Analysis of Liquidity Ratios

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Liquidity Ratios (Summary)

Raytheon Technologies Corp., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Current ratio 1.21 1.08 1.13 1.35 1.30
Quick ratio 0.78 0.73 0.76 0.88 0.85
Cash ratio 0.25 0.21 0.20 0.37 0.33

Based on: 10-K (filing date: 2021-02-08), 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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Raytheon Technologies Corp.’s current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Raytheon Technologies Corp.’s quick ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Raytheon Technologies Corp.’s cash ratio improved from 2018 to 2019 and from 2019 to 2020.

Current Ratio

Raytheon Technologies Corp., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Current assets 43,376  37,497  35,503  32,858  28,550 
Current liabilities 35,848  34,586  31,368  24,391  21,906 
Liquidity Ratio
Current ratio1 1.21 1.08 1.13 1.35 1.30
Benchmarks
Current Ratio, Competitors2
3M Co. 1.89 1.41 1.89 1.86 1.89
Boeing Co. 1.39 1.05 1.08 1.16 1.25
Caterpillar Inc. 1.53 1.47 1.37 1.35 1.22
General Electric Co. 1.58 1.16 1.08 1.16 1.17
Honeywell International Inc. 1.47 1.34 1.29 1.38 1.41
Illinois Tool Works Inc. 2.52 2.90 1.63 2.38 2.22
Lockheed Martin Corp. 1.39 1.22 1.12 1.38 1.20
Northrop Grumman Corp. 1.60 1.13 1.17 2.35 1.22
Current Ratio, Sector
Capital Goods 1.46 1.18 1.17 1.30 1.26
Current Ratio, Industry
Industrials 1.44 1.18 1.16 1.29 1.25

Based on: 10-K (filing date: 2021-02-08), 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).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 43,376 ÷ 35,848 = 1.21

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Raytheon Technologies Corp.’s current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Quick Ratio

Raytheon Technologies Corp., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,802  7,378  6,152  8,985  7,157 
Accounts receivable, net 9,254  13,524  14,271  12,595  11,481 
Contract assets 9,931  4,184  3,486  —  — 
Total quick assets 27,987  25,086  23,909  21,580  18,638 
 
Current liabilities 35,848  34,586  31,368  24,391  21,906 
Liquidity Ratio
Quick ratio1 0.78 0.73 0.76 0.88 0.85
Benchmarks
Quick Ratio, Competitors2
3M Co. 1.23 0.79 1.14 1.18 1.14
Boeing Co. 0.41 0.23 0.28 0.37 0.38
Caterpillar Inc. 1.02 0.98 0.90 0.91 0.83
General Electric Co. 1.16 0.86 0.79 0.84 0.87
Honeywell International Inc. 1.15 0.99 0.97 1.04 1.07
Illinois Tool Works Inc. 1.96 2.06 1.16 1.87 1.75
Lockheed Martin Corp. 1.05 0.93 0.88 0.91 0.80
Northrop Grumman Corp. 1.21 0.94 0.97 2.18 1.04
Quick Ratio, Sector
Capital Goods 0.84 0.66 0.68 0.82 0.79
Quick Ratio, Industry
Industrials 0.88 0.71 0.71 0.85 0.82

Based on: 10-K (filing date: 2021-02-08), 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).

1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 27,987 ÷ 35,848 = 0.78

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Raytheon Technologies Corp.’s quick ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Cash Ratio

Raytheon Technologies Corp., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Cash and cash equivalents 8,802  7,378  6,152  8,985  7,157 
Total cash assets 8,802  7,378  6,152  8,985  7,157 
 
Current liabilities 35,848  34,586  31,368  24,391  21,906 
Liquidity Ratio
Cash ratio1 0.25 0.21 0.20 0.37 0.33
Benchmarks
Cash Ratio, Competitors2
3M Co. 0.63 0.27 0.45 0.54 0.43
Boeing Co. 0.29 0.10 0.10 0.18 0.20
Caterpillar Inc. 0.36 0.31 0.28 0.31 0.27
General Electric Co. 0.78 0.60 0.50 0.54 0.58
Honeywell International Inc. 0.79 0.58 0.58 0.57 0.57
Illinois Tool Works Inc. 0.99 0.92 0.42 1.01 0.90
Lockheed Martin Corp. 0.23 0.11 0.05 0.23 0.15
Northrop Grumman Corp. 0.51 0.24 0.19 1.61 0.45
Cash Ratio, Sector
Capital Goods 0.46 0.31 0.29 0.43 0.41
Cash Ratio, Industry
Industrials 0.46 0.32 0.29 0.42 0.40

Based on: 10-K (filing date: 2021-02-08), 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).

1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 8,802 ÷ 35,848 = 0.25

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Raytheon Technologies Corp.’s cash ratio improved from 2018 to 2019 and from 2019 to 2020.