Stock Analysis on Net

Raytheon Technologies Corp. (NYSE:RTX)

Analysis of Solvency Ratios 

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Raytheon Technologies Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 0.43 0.44 1.04 1.18 0.93
Debt to equity (including operating lease liability) 0.46 0.47 1.11 1.18 0.93
Debt to capital 0.30 0.31 0.51 0.54 0.48
Debt to capital (including operating lease liability) 0.31 0.32 0.53 0.54 0.48
Debt to assets 0.20 0.20 0.31 0.34 0.28
Debt to assets (including operating lease liability) 0.21 0.21 0.33 0.34 0.28
Financial leverage 2.21 2.25 3.34 3.49 3.27
Coverage Ratios
Interest coverage 4.63 -0.67 5.65 7.76 8.63
Fixed charge coverage 3.62 -0.24 4.31 6.03 6.44

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Raytheon Technologies Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Raytheon Technologies Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Raytheon Technologies Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Raytheon Technologies Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Raytheon Technologies Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Raytheon Technologies Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Raytheon Technologies Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Raytheon Technologies Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Raytheon Technologies Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Debt to Equity

Raytheon Technologies Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 134  247  2,364  1,469  392 
Long-term debt currently due 24  550  3,496  2,876  2,104 
Long-term debt, excluding currently due 31,327  31,026  37,788  41,192  24,989 
Total debt 31,485  31,823  43,648  45,537  27,485 
 
Shareowners’ equity 73,068  72,163  41,774  38,446  29,610 
Solvency Ratio
Debt to equity1 0.43 0.44 1.04 1.18 0.93
Benchmarks
Debt to Equity, Competitors2
3M Co. 1.16 1.47 2.03 1.50 1.21
Boeing Co. 40.85 31.32
Caterpillar Inc. 2.29 2.42 2.58 2.60 2.55
General Electric Co. 0.87 2.11 3.21 3.55 2.09
Honeywell International Inc. 1.06 1.28 0.87 0.89 1.04
Lockheed Martin Corp. 1.07 2.02 4.05 10.12
Debt to Equity, Sector
Capital Goods 1.33 1.85 2.31 2.22 1.87
Debt to Equity, Industry
Industrials 1.61 2.13 2.01 1.89 1.61

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Shareowners’ equity
= 31,485 ÷ 73,068 = 0.43

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Raytheon Technologies Corp. debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Raytheon Technologies Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 134  247  2,364  1,469  392 
Long-term debt currently due 24  550  3,496  2,876  2,104 
Long-term debt, excluding currently due 31,327  31,026  37,788  41,192  24,989 
Total debt 31,485  31,823  43,648  45,537  27,485 
Operating lease liabilities, current (included in Other accrued liabilities) 411  482  544  —  — 
Operating lease liabilities, non-current 1,657  1,516  2,144  —  — 
Total debt (including operating lease liability) 33,553  33,821  46,336  45,537  27,485 
 
Shareowners’ equity 73,068  72,163  41,774  38,446  29,610 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.46 0.47 1.11 1.18 0.93
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
3M Co. 1.22 1.54 2.12 1.50 1.21
Boeing Co. 40.85 31.32
Caterpillar Inc. 2.33 2.46 2.62 2.60 2.55
General Electric Co. 0.94 2.20 3.32 3.55 2.09
Honeywell International Inc. 1.11 1.32 0.90 0.89 1.04
Lockheed Martin Corp. 1.19 2.21 4.40 10.12
Debt to Equity (including Operating Lease Liability), Sector
Capital Goods 1.39 1.92 2.40 2.22 1.87
Debt to Equity (including Operating Lease Liability), Industry
Industrials 1.81 2.35 2.18 1.97 1.61

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareowners’ equity
= 33,553 ÷ 73,068 = 0.46

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Raytheon Technologies Corp. debt to equity ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Raytheon Technologies Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 134  247  2,364  1,469  392 
Long-term debt currently due 24  550  3,496  2,876  2,104 
Long-term debt, excluding currently due 31,327  31,026  37,788  41,192  24,989 
Total debt 31,485  31,823  43,648  45,537  27,485 
Shareowners’ equity 73,068  72,163  41,774  38,446  29,610 
Total capital 104,553  103,986  85,422  83,983  57,095 
Solvency Ratio
Debt to capital1 0.30 0.31 0.51 0.54 0.48
Benchmarks
Debt to Capital, Competitors2
3M Co. 0.54 0.60 0.67 0.60 0.55
Boeing Co. 1.35 1.40 1.46 0.98 0.97
Caterpillar Inc. 0.70 0.71 0.72 0.72 0.72
General Electric Co. 0.47 0.68 0.76 0.78 0.68
Honeywell International Inc. 0.51 0.56 0.46 0.47 0.51
Lockheed Martin Corp. 0.52 0.67 0.80 0.91 1.05
Debt to Capital, Sector
Capital Goods 0.57 0.65 0.70 0.69 0.65
Debt to Capital, Industry
Industrials 0.62 0.68 0.67 0.65 0.62

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 31,485 ÷ 104,553 = 0.30

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Raytheon Technologies Corp. debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Raytheon Technologies Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 134  247  2,364  1,469  392 
Long-term debt currently due 24  550  3,496  2,876  2,104 
Long-term debt, excluding currently due 31,327  31,026  37,788  41,192  24,989 
Total debt 31,485  31,823  43,648  45,537  27,485 
Operating lease liabilities, current (included in Other accrued liabilities) 411  482  544  —  — 
Operating lease liabilities, non-current 1,657  1,516  2,144  —  — 
Total debt (including operating lease liability) 33,553  33,821  46,336  45,537  27,485 
Shareowners’ equity 73,068  72,163  41,774  38,446  29,610 
Total capital (including operating lease liability) 106,621  105,984  88,110  83,983  57,095 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.31 0.32 0.53 0.54 0.48
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
3M Co. 0.55 0.61 0.68 0.60 0.55
Boeing Co. 1.34 1.39 1.43 0.98 0.97
Caterpillar Inc. 0.70 0.71 0.72 0.72 0.72
General Electric Co. 0.49 0.69 0.77 0.78 0.68
Honeywell International Inc. 0.53 0.57 0.47 0.47 0.51
Lockheed Martin Corp. 0.54 0.69 0.81 0.91 1.05
Debt to Capital (including Operating Lease Liability), Sector
Capital Goods 0.58 0.66 0.71 0.69 0.65
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.64 0.70 0.69 0.66 0.62

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 33,553 ÷ 106,621 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Raytheon Technologies Corp. debt to capital ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Raytheon Technologies Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 134  247  2,364  1,469  392 
Long-term debt currently due 24  550  3,496  2,876  2,104 
Long-term debt, excluding currently due 31,327  31,026  37,788  41,192  24,989 
Total debt 31,485  31,823  43,648  45,537  27,485 
 
Total assets 161,404  162,153  139,716  134,211  96,920 
Solvency Ratio
Debt to assets1 0.20 0.20 0.31 0.34 0.28
Benchmarks
Debt to Assets, Competitors2
3M Co. 0.37 0.40 0.46 0.40 0.37
Boeing Co. 0.42 0.42 0.20 0.12 0.12
Caterpillar Inc. 0.46 0.47 0.48 0.47 0.45
General Electric Co. 0.18 0.30 0.34 0.36 0.36
Honeywell International Inc. 0.30 0.35 0.27 0.28 0.30
Lockheed Martin Corp. 0.23 0.24 0.27 0.31 0.31
Debt to Assets, Sector
Capital Goods 0.28 0.32 0.32 0.32 0.32
Debt to Assets, Industry
Industrials 0.32 0.35 0.33 0.33 0.33

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 31,485 ÷ 161,404 = 0.20

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Raytheon Technologies Corp. debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Raytheon Technologies Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Short-term borrowings 134  247  2,364  1,469  392 
Long-term debt currently due 24  550  3,496  2,876  2,104 
Long-term debt, excluding currently due 31,327  31,026  37,788  41,192  24,989 
Total debt 31,485  31,823  43,648  45,537  27,485 
Operating lease liabilities, current (included in Other accrued liabilities) 411  482  544  —  — 
Operating lease liabilities, non-current 1,657  1,516  2,144  —  — 
Total debt (including operating lease liability) 33,553  33,821  46,336  45,537  27,485 
 
Total assets 161,404  162,153  139,716  134,211  96,920 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.21 0.21 0.33 0.34 0.28
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
3M Co. 0.39 0.42 0.48 0.40 0.37
Boeing Co. 0.43 0.43 0.21 0.12 0.12
Caterpillar Inc. 0.46 0.48 0.49 0.47 0.45
General Electric Co. 0.19 0.31 0.35 0.36 0.36
Honeywell International Inc. 0.32 0.36 0.28 0.28 0.30
Lockheed Martin Corp. 0.26 0.26 0.29 0.31 0.31
Debt to Assets (including Operating Lease Liability), Sector
Capital Goods 0.30 0.33 0.34 0.32 0.32
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.36 0.39 0.36 0.34 0.33

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 33,553 ÷ 161,404 = 0.21

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Raytheon Technologies Corp. debt to assets ratio (including operating lease liability) improved from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Raytheon Technologies Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 161,404  162,153  139,716  134,211  96,920 
Shareowners’ equity 73,068  72,163  41,774  38,446  29,610 
Solvency Ratio
Financial leverage1 2.21 2.25 3.34 3.49 3.27
Benchmarks
Financial Leverage, Competitors2
3M Co. 3.13 3.68 4.44 3.73 3.29
Boeing Co. 346.19 260.09
Caterpillar Inc. 5.02 5.11 5.38 5.59 5.62
General Electric Co. 4.93 7.13 9.40 9.98 5.88
Honeywell International Inc. 3.47 3.68 3.17 3.18 3.44
Lockheed Martin Corp. 4.64 8.43 15.20 32.19
Financial Leverage, Sector
Capital Goods 4.67 5.73 7.13 6.88 5.79
Financial Leverage, Industry
Industrials 5.00 6.11 6.04 5.74 4.92

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Shareowners’ equity
= 161,404 ÷ 73,068 = 2.21

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Raytheon Technologies Corp. financial leverage ratio decreased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Raytheon Technologies Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,864  (3,519) 5,537  5,269  4,552 
Add: Net income attributable to noncontrolling interest 248  224  411  385  368 
Less: Net loss from discontinued operations (33) (367) —  —  — 
Add: Income tax expense 786  575  2,295  2,626  2,843 
Add: Interest expense 1,358  1,408  1,773  1,225  1,017 
Earnings before interest and tax (EBIT) 6,289  (945) 10,016  9,505  8,780 
Solvency Ratio
Interest coverage1 4.63 -0.67 5.65 7.76 8.63
Benchmarks
Interest Coverage, Competitors2
3M Co. 15.78 13.68 13.75 21.00 24.44
Boeing Co. -0.88 -5.71 -2.19 25.39 28.90
Caterpillar Inc. 17.88 8.80 19.62 20.42 8.72
General Electric Co. -0.96 2.59 1.27 -2.98 -0.81
Honeywell International Inc. 22.09 17.75 22.17 21.40 22.84
Lockheed Martin Corp. 14.27 14.93 12.09 9.74 9.09
Interest Coverage, Sector
Capital Goods 4.39 2.51 5.12 4.26 5.07
Interest Coverage, Industry
Industrials 5.36 1.20 5.82 5.63 6.47

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,289 ÷ 1,358 = 4.63

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Raytheon Technologies Corp. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.

Fixed Charge Coverage

Raytheon Technologies Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common shareowners 3,864  (3,519) 5,537  5,269  4,552 
Add: Net income attributable to noncontrolling interest 248  224  411  385  368 
Less: Net loss from discontinued operations (33) (367) —  —  — 
Add: Income tax expense 786  575  2,295  2,626  2,843 
Add: Interest expense 1,358  1,408  1,773  1,225  1,017 
Earnings before interest and tax (EBIT) 6,289  (945) 10,016  9,505  8,780 
Add: Operating lease expense 525  497  720  422  411 
Earnings before fixed charges and tax 6,814  (448) 10,736  9,927  9,191 
 
Interest expense 1,358  1,408  1,773  1,225  1,017 
Operating lease expense 525  497  720  422  411 
Fixed charges 1,883  1,905  2,493  1,647  1,428 
Solvency Ratio
Fixed charge coverage1 3.62 -0.24 4.31 6.03 6.44
Benchmarks
Fixed Charge Coverage, Competitors2
3M Co. 9.94 8.65 8.56 10.42 12.35
Boeing Co. -0.64 -4.75 -1.19 15.81 16.62
Caterpillar Inc. 12.73 6.58 13.01 11.81 5.75
General Electric Co. -0.22 1.93 1.09 -1.77 -0.30
Honeywell International Inc. 13.67 11.49 14.06 11.30 10.85
Lockheed Martin Corp. 9.95 11.12 9.12 7.38 7.43
Fixed Charge Coverage, Sector
Capital Goods 3.35 2.03 3.81 3.10 3.63
Fixed Charge Coverage, Industry
Industrials 3.56 1.09 3.65 3.41 3.67

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,814 ÷ 1,883 = 3.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Raytheon Technologies Corp. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level.