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

Raytheon Technologies Corp. (NYSE:RTX)

Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

Raytheon Technologies Corp., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 1.04 1.18 0.93 0.87 0.75
Debt to equity (including operating lease liability) 1.11 1.18 0.93 0.87 0.75
Debt to capital 0.51 0.54 0.48 0.46 0.43
Debt to capital (including operating lease liability) 0.53 0.54 0.48 0.46 0.43
Debt to assets 0.31 0.34 0.28 0.27 0.23
Debt to assets (including operating lease liability) 0.33 0.34 0.28 0.27 0.23
Financial leverage 3.34 3.49 3.27 3.25 3.20
Coverage Ratios
Interest coverage 5.65 7.76 8.63 7.14 7.84
Fixed charge coverage 4.31 6.03 6.44 5.61 5.86

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).

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

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)
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 1.74 1.71 1.50 1.40 1.38

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

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)
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 1.40 1.38

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

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)
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

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)
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

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)
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 0.30 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).

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

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)
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 0.30 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).

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

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)
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 5.45 5.30 4.73 4.61 4.41

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

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)
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 6.63 6.52 7.49 7.86 10.13

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

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)
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 3.98 4.41 4.63 5.62

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.