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 | 1.61 | 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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
| 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. |