Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Raytheon Technologies Corp., solvency ratios
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
| 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 | 1.55 | 2.09 | 2.25 | 2.09 | 1.77 | |
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
| 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 | 1.73 | 2.30 | 2.41 | 2.15 | 1.77 | |
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
| 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 | 0.61 | 0.68 | 0.69 | 0.68 | 0.64 | |
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
| 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 | 0.63 | 0.70 | 0.71 | 0.68 | 0.64 | |
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
| 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 | 0.34 | 0.34 | 0.34 | |
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
| 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 | 0.35 | 0.38 | 0.37 | 0.35 | 0.34 | |
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
| 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 | 4.89 | 6.05 | 6.56 | 6.16 | 5.22 | |
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
| 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 | 5.67 | 2.20 | 5.41 | 5.25 | 6.15 | |
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
| 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 | 3.71 | 1.68 | 3.47 | 3.25 | 3.57 | |
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. |