Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Raytheon Technologies Corp., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Raytheon Technologies Corp.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| 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.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Raytheon Technologies Corp.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| 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.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Raytheon Technologies Corp.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| 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.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Raytheon Technologies Corp.’s financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Raytheon Technologies Corp.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Raytheon Technologies Corp.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity
Raytheon Technologies Corp., debt to equity calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 2,364 | 1,469 | 392 | 601 | 926 | |
| Long-term debt currently due | 3,496 | 2,876 | 2,104 | 1,603 | 179 | |
| Long-term debt, excluding currently due | 37,788 | 41,192 | 24,989 | 21,697 | 19,320 | |
| Total debt | 43,648 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Shareowners’ equity | 41,774 | 38,446 | 29,610 | 27,579 | 27,358 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.04 | 1.18 | 0.93 | 0.87 | 0.75 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | 40.85 | 31.32 | 12.18 | 1.57 | |
| General Dynamics Corp. | 0.88 | 1.06 | 0.35 | 0.35 | 0.32 | |
| Lockheed Martin Corp. | 4.05 | 10.12 | — | 9.45 | 4.93 | |
| Northrop Grumman Corp. | 1.57 | 1.76 | 2.17 | 1.34 | 1.18 | |
| Debt to Equity, Sector | ||||||
| Aerospace & Defense | 1.86 | 1.67 | 1.51 | 1.28 | 1.05 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.75 | 1.71 | 1.50 | 1.41 | 1.39 | |
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
Debt to equity = Total debt ÷ Shareowners’ equity
= 43,648 ÷ 41,774 = 1.04
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.’s debt to equity ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Debt to Equity (including Operating Lease Liability)
Raytheon Technologies Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 2,364 | 1,469 | 392 | 601 | 926 | |
| Long-term debt currently due | 3,496 | 2,876 | 2,104 | 1,603 | 179 | |
| Long-term debt, excluding currently due | 37,788 | 41,192 | 24,989 | 21,697 | 19,320 | |
| Total debt | 43,648 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Operating lease liabilities, current | 544 | — | — | — | — | |
| Operating lease liabilities, non-current | 2,144 | — | — | — | — | |
| Total debt (including operating lease liability) | 46,336 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Shareowners’ equity | 41,774 | 38,446 | 29,610 | 27,579 | 27,358 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.11 | 1.18 | 0.93 | 0.87 | 0.75 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | 40.85 | 31.32 | 12.18 | 1.57 | |
| General Dynamics Corp. | 0.99 | 1.06 | 0.35 | 0.35 | 0.32 | |
| Lockheed Martin Corp. | 4.40 | 10.12 | — | 9.45 | 4.93 | |
| Northrop Grumman Corp. | 1.75 | 1.76 | 2.17 | 1.34 | 1.18 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Aerospace & Defense | 2.00 | 1.67 | 1.51 | 1.28 | 1.05 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.84 | 1.71 | 1.50 | 1.41 | 1.39 | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareowners’ equity
= 46,336 ÷ 41,774 = 1.11
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.’s debt to equity ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Capital
Raytheon Technologies Corp., debt to capital calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 2,364 | 1,469 | 392 | 601 | 926 | |
| Long-term debt currently due | 3,496 | 2,876 | 2,104 | 1,603 | 179 | |
| Long-term debt, excluding currently due | 37,788 | 41,192 | 24,989 | 21,697 | 19,320 | |
| Total debt | 43,648 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Shareowners’ equity | 41,774 | 38,446 | 29,610 | 27,579 | 27,358 | |
| Total capital | 85,422 | 83,983 | 57,095 | 51,480 | 47,783 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.51 | 0.54 | 0.48 | 0.46 | 0.43 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.46 | 0.98 | 0.97 | 0.92 | 0.61 | |
| General Dynamics Corp. | 0.47 | 0.51 | 0.26 | 0.26 | 0.24 | |
| Lockheed Martin Corp. | 0.80 | 0.91 | 1.05 | 0.90 | 0.83 | |
| Northrop Grumman Corp. | 0.61 | 0.64 | 0.68 | 0.57 | 0.54 | |
| Debt to Capital, Sector | ||||||
| Aerospace & Defense | 0.65 | 0.63 | 0.60 | 0.56 | 0.51 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.64 | 0.63 | 0.60 | 0.58 | 0.58 | |
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
Debt to capital = Total debt ÷ Total capital
= 43,648 ÷ 85,422 = 0.51
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.’s debt to capital ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Debt to Capital (including Operating Lease Liability)
Raytheon Technologies Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 2,364 | 1,469 | 392 | 601 | 926 | |
| Long-term debt currently due | 3,496 | 2,876 | 2,104 | 1,603 | 179 | |
| Long-term debt, excluding currently due | 37,788 | 41,192 | 24,989 | 21,697 | 19,320 | |
| Total debt | 43,648 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Operating lease liabilities, current | 544 | — | — | — | — | |
| Operating lease liabilities, non-current | 2,144 | — | — | — | — | |
| Total debt (including operating lease liability) | 46,336 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Shareowners’ equity | 41,774 | 38,446 | 29,610 | 27,579 | 27,358 | |
| Total capital (including operating lease liability) | 88,110 | 83,983 | 57,095 | 51,480 | 47,783 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.53 | 0.54 | 0.48 | 0.46 | 0.43 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.43 | 0.98 | 0.97 | 0.92 | 0.61 | |
| General Dynamics Corp. | 0.50 | 0.51 | 0.26 | 0.26 | 0.24 | |
| Lockheed Martin Corp. | 0.81 | 0.91 | 1.05 | 0.90 | 0.83 | |
| Northrop Grumman Corp. | 0.64 | 0.64 | 0.68 | 0.57 | 0.54 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Aerospace & Defense | 0.67 | 0.63 | 0.60 | 0.56 | 0.51 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.65 | 0.63 | 0.60 | 0.58 | 0.58 | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 46,336 ÷ 88,110 = 0.53
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.’s debt to capital ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets
Raytheon Technologies Corp., debt to assets calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 2,364 | 1,469 | 392 | 601 | 926 | |
| Long-term debt currently due | 3,496 | 2,876 | 2,104 | 1,603 | 179 | |
| Long-term debt, excluding currently due | 37,788 | 41,192 | 24,989 | 21,697 | 19,320 | |
| Total debt | 43,648 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Total assets | 139,716 | 134,211 | 96,920 | 89,706 | 87,484 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.31 | 0.34 | 0.28 | 0.27 | 0.23 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.20 | 0.12 | 0.12 | 0.11 | 0.11 | |
| General Dynamics Corp. | 0.24 | 0.27 | 0.11 | 0.12 | 0.11 | |
| Lockheed Martin Corp. | 0.27 | 0.31 | 0.31 | 0.30 | 0.31 | |
| Northrop Grumman Corp. | 0.34 | 0.38 | 0.44 | 0.28 | 0.27 | |
| Debt to Assets, Sector | ||||||
| Aerospace & Defense | 0.27 | 0.26 | 0.24 | 0.21 | 0.19 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.32 | 0.32 | 0.32 | 0.31 | 0.32 | |
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
Debt to assets = Total debt ÷ Total assets
= 43,648 ÷ 139,716 = 0.31
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.’s debt to assets ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Raytheon Technologies Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 2,364 | 1,469 | 392 | 601 | 926 | |
| Long-term debt currently due | 3,496 | 2,876 | 2,104 | 1,603 | 179 | |
| Long-term debt, excluding currently due | 37,788 | 41,192 | 24,989 | 21,697 | 19,320 | |
| Total debt | 43,648 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Operating lease liabilities, current | 544 | — | — | — | — | |
| Operating lease liabilities, non-current | 2,144 | — | — | — | — | |
| Total debt (including operating lease liability) | 46,336 | 45,537 | 27,485 | 23,901 | 20,425 | |
| Total assets | 139,716 | 134,211 | 96,920 | 89,706 | 87,484 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.33 | 0.34 | 0.28 | 0.27 | 0.23 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.21 | 0.12 | 0.12 | 0.11 | 0.11 | |
| General Dynamics Corp. | 0.28 | 0.27 | 0.11 | 0.12 | 0.11 | |
| Lockheed Martin Corp. | 0.29 | 0.31 | 0.31 | 0.30 | 0.31 | |
| Northrop Grumman Corp. | 0.38 | 0.38 | 0.44 | 0.28 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Aerospace & Defense | 0.29 | 0.26 | 0.24 | 0.21 | 0.19 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.34 | 0.32 | 0.32 | 0.31 | 0.32 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 46,336 ÷ 139,716 = 0.33
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.’s debt to assets ratio (including operating lease liability) deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Financial Leverage
Raytheon Technologies Corp., financial leverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 139,716 | 134,211 | 96,920 | 89,706 | 87,484 | |
| Shareowners’ equity | 41,774 | 38,446 | 29,610 | 27,579 | 27,358 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.34 | 3.49 | 3.27 | 3.25 | 3.20 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | 346.19 | 260.09 | 110.16 | 14.90 | |
| General Dynamics Corp. | 3.60 | 3.87 | 3.06 | 2.99 | 2.98 | |
| Lockheed Martin Corp. | 15.20 | 32.19 | — | 31.64 | 15.86 | |
| Northrop Grumman Corp. | 4.66 | 4.60 | 4.95 | 4.87 | 4.43 | |
| Financial Leverage, Sector | ||||||
| Aerospace & Defense | 7.00 | 6.31 | 6.40 | 6.20 | 5.42 | |
| Financial Leverage, Industry | ||||||
| Industrials | 5.40 | 5.26 | 4.71 | 4.60 | 4.40 | |
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
Financial leverage = Total assets ÷ Shareowners’ equity
= 139,716 ÷ 41,774 = 3.34
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.’s financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
Interest Coverage
Raytheon Technologies Corp., interest coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to common shareowners | 5,537 | 5,269 | 4,552 | 5,055 | 7,608 | |
| Add: Net income attributable to noncontrolling interest | 411 | 385 | 368 | 371 | 358 | |
| Less: Net income (loss) from discontinued operations | — | — | — | (10) | 3,610 | |
| Add: Income tax expense | 2,295 | 2,626 | 2,843 | 1,697 | 2,111 | |
| Add: Interest expense | 1,773 | 1,225 | 1,017 | 1,161 | 945 | |
| Earnings before interest and tax (EBIT) | 10,016 | 9,505 | 8,780 | 8,294 | 7,412 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 5.65 | 7.76 | 8.63 | 7.14 | 7.84 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -2.19 | 25.39 | 28.90 | 19.19 | 27.01 | |
| General Dynamics Corp. | 9.90 | 11.92 | 35.85 | 43.74 | 42.86 | |
| Lockheed Martin Corp. | 12.09 | 9.74 | 9.09 | 8.37 | 12.34 | |
| Northrop Grumman Corp. | 5.83 | 7.66 | 9.47 | 10.71 | 10.27 | |
| Interest Coverage, Sector | ||||||
| Aerospace & Defense | 5.81 | 11.15 | 13.06 | 10.78 | 13.38 | |
| Interest Coverage, Industry | ||||||
| Industrials | 6.60 | 6.54 | 7.48 | 7.79 | 9.86 | |
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
Interest coverage = EBIT ÷ Interest expense
= 10,016 ÷ 1,773 = 5.65
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.’s interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Fixed Charge Coverage
Raytheon Technologies Corp., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to common shareowners | 5,537 | 5,269 | 4,552 | 5,055 | 7,608 | |
| Add: Net income attributable to noncontrolling interest | 411 | 385 | 368 | 371 | 358 | |
| Less: Net income (loss) from discontinued operations | — | — | — | (10) | 3,610 | |
| Add: Income tax expense | 2,295 | 2,626 | 2,843 | 1,697 | 2,111 | |
| Add: Interest expense | 1,773 | 1,225 | 1,017 | 1,161 | 945 | |
| Earnings before interest and tax (EBIT) | 10,016 | 9,505 | 8,780 | 8,294 | 7,412 | |
| Add: Operating lease expense | 720 | 422 | 411 | 386 | 386 | |
| Earnings before fixed charges and tax | 10,736 | 9,927 | 9,191 | 8,680 | 7,798 | |
| Interest expense | 1,773 | 1,225 | 1,017 | 1,161 | 945 | |
| Operating lease expense | 720 | 422 | 411 | 386 | 386 | |
| Fixed charges | 2,493 | 1,647 | 1,428 | 1,547 | 1,331 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 4.31 | 6.03 | 6.44 | 5.61 | 5.86 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -1.19 | 15.81 | 16.62 | 10.39 | 14.20 | |
| General Dynamics Corp. | 6.23 | 6.42 | 10.57 | 11.42 | 11.77 | |
| Lockheed Martin Corp. | 9.12 | 7.38 | 7.43 | 6.65 | 8.19 | |
| Northrop Grumman Corp. | 3.73 | 4.99 | 5.62 | 5.88 | 5.63 | |
| Fixed Charge Coverage, Sector | ||||||
| Aerospace & Defense | 4.23 | 7.66 | 8.59 | 7.17 | 8.18 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 4.24 | 4.01 | 4.43 | 4.63 | 5.55 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 10,736 ÷ 2,493 = 4.31
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.’s fixed charge coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |