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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current ratio 1.08 1.13 1.35 1.30 1.18
Quick ratio 0.73 0.76 0.88 0.85 0.78
Cash ratio 0.21 0.20 0.37 0.33 0.31

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).

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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Raytheon Technologies Corp.’s cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Current Ratio

Raytheon Technologies Corp., current ratio 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 37,497  35,503  32,858  28,550  26,706 
Current liabilities 34,586  31,368  24,391  21,906  22,618 
Liquidity Ratio
Current ratio1 1.08 1.13 1.35 1.30 1.18
Benchmarks
Current Ratio, Competitors2
Boeing Co. 1.05 1.08 1.16 1.25 1.35
General Dynamics Corp. 1.18 1.23 1.40 1.20 1.17
Lockheed Martin Corp. 1.22 1.12 1.38 1.20 1.15
Northrop Grumman Corp. 1.13 1.17 2.35 1.22 1.16
Current Ratio, Sector
Aerospace & Defense 1.09 1.11 1.32 1.25 1.26
Current Ratio, Industry
Industrials 1.28 1.29 1.44 1.43 1.37

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).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 37,497 ÷ 34,586 = 1.08

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 2017 to 2018 and from 2018 to 2019.

Quick Ratio

Raytheon Technologies Corp., quick ratio 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)
Cash and cash equivalents 7,378  6,152  8,985  7,157  7,075 
Accounts receivable, net of allowance for doubtful accounts 13,524  14,271  12,595  11,481  10,653 
Contract assets, current 4,184  3,486  —  —  — 
Total quick assets 25,086  23,909  21,580  18,638  17,728 
 
Current liabilities 34,586  31,368  24,391  21,906  22,618 
Liquidity Ratio
Quick ratio1 0.73 0.76 0.88 0.85 0.78
Benchmarks
Quick Ratio, Competitors2
Boeing Co. 0.23 0.28 0.37 0.38 0.42
General Dynamics Corp. 0.73 0.77 0.90 0.87 0.85
Lockheed Martin Corp. 0.93 0.88 0.91 0.80 0.65
Northrop Grumman Corp. 0.94 0.97 2.18 1.04 0.95
Quick Ratio, Sector
Aerospace & Defense 0.47 0.52 0.71 0.63 0.61
Quick Ratio, Industry
Industrials 0.80 0.81 0.96 0.96 0.92

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).

1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 25,086 ÷ 34,586 = 0.73

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 2017 to 2018 and from 2018 to 2019.

Cash Ratio

Raytheon Technologies Corp., cash ratio 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)
Cash and cash equivalents 7,378  6,152  8,985  7,157  7,075 
Total cash assets 7,378  6,152  8,985  7,157  7,075 
 
Current liabilities 34,586  31,368  24,391  21,906  22,618 
Liquidity Ratio
Cash ratio1 0.21 0.20 0.37 0.33 0.31
Benchmarks
Cash Ratio, Competitors2
Boeing Co. 0.10 0.10 0.18 0.20 0.24
General Dynamics Corp. 0.05 0.07 0.23 0.18 0.22
Lockheed Martin Corp. 0.11 0.05 0.23 0.15 0.08
Northrop Grumman Corp. 0.24 0.19 1.61 0.45 0.42
Cash Ratio, Sector
Aerospace & Defense 0.13 0.12 0.32 0.23 0.24
Cash Ratio, Industry
Industrials 0.39 0.36 0.50 0.50 0.49

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).

1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 7,378 ÷ 34,586 = 0.21

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 deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.