Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Raytheon Technologies Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Raytheon Technologies Corp. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Raytheon Technologies Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Raytheon Technologies Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Raytheon Technologies Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Raytheon Technologies Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Gross Profit Margin
Raytheon Technologies Corp., gross profit margin 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) | ||||||
| Gross margin | 12,491) | 8,531) | 19,981) | 16,516) | 15,884) | |
| Net sales | 64,388) | 56,587) | 77,046) | 66,501) | 59,837) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 19.40% | 15.08% | 25.93% | 24.84% | 26.55% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 4.84% | -9.78% | 5.83% | 19.42% | 18.55% | |
| Caterpillar Inc. | 26.30% | 25.47% | 27.83% | 28.61% | 27.24% | |
| General Electric Co. | 24.19% | 17.26% | 23.52% | 18.38% | 18.78% | |
| Honeywell International Inc. | 31.98% | 32.07% | 33.70% | 30.52% | 31.97% | |
| Lockheed Martin Corp. | 13.52% | 13.23% | 13.99% | 13.53% | — | |
| Northrop Grumman Corp. | 20.38% | 20.32% | 21.45% | 22.57% | — | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 12,491 ÷ 64,388 = 19.40%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Raytheon Technologies Corp. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Operating Profit Margin
Raytheon Technologies Corp., operating profit margin 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) | ||||||
| Operating profit (loss) | 4,958) | (1,889) | 8,966) | 8,553) | 8,672) | |
| Net sales | 64,388) | 56,587) | 77,046) | 66,501) | 59,837) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 7.70% | -3.34% | 11.64% | 12.86% | 14.49% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -4.66% | -21.95% | -2.58% | 11.85% | 11.01% | |
| Caterpillar Inc. | 14.27% | 11.67% | 16.33% | 16.00% | 10.32% | |
| General Electric Co. | 8.58% | 5.49% | 12.84% | 9.54% | 9.06% | |
| Honeywell International Inc. | 18.03% | 17.45% | 18.66% | 16.04% | 17.64% | |
| Lockheed Martin Corp. | 13.61% | 13.22% | 14.29% | 13.64% | — | |
| Northrop Grumman Corp. | 15.84% | 11.05% | 11.73% | 12.56% | — | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 9.40% | 3.41% | 10.87% | 12.53% | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 11.00% | 5.04% | 11.82% | 12.80% | — | |
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
Operating profit margin = 100 × Operating profit (loss) ÷ Net sales
= 100 × 4,958 ÷ 64,388 = 7.70%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Raytheon Technologies Corp. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Net Profit Margin
Raytheon Technologies Corp., net profit margin 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) | |
| Net sales | 64,388) | 56,587) | 77,046) | 66,501) | 59,837) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 6.00% | -6.22% | 7.19% | 7.92% | 7.61% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -6.75% | -20.42% | -0.83% | 10.34% | 8.78% | |
| Caterpillar Inc. | 13.47% | 7.68% | 12.00% | 11.86% | 1.77% | |
| General Electric Co. | -9.17% | 7.81% | -5.69% | -19.69% | -5.11% | |
| Honeywell International Inc. | 16.11% | 14.64% | 16.73% | 16.18% | 4.08% | |
| Lockheed Martin Corp. | 9.42% | 10.45% | 10.42% | 9.39% | — | |
| Northrop Grumman Corp. | 19.64% | 8.67% | 6.64% | 10.73% | — | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 4.83% | 2.24% | 4.89% | 3.17% | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 7.21% | 2.10% | 5.89% | 5.25% | — | |
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
Net profit margin = 100 × Net income (loss) attributable to common shareowners ÷ Net sales
= 100 × 3,864 ÷ 64,388 = 6.00%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Raytheon Technologies Corp. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Return on Equity (ROE)
Raytheon Technologies Corp., ROE 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) | |
| Shareowners’ equity | 73,068) | 72,163) | 41,774) | 38,446) | 29,610) | |
| Profitability Ratio | ||||||
| ROE1 | 5.29% | -4.88% | 13.25% | 13.70% | 15.37% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | 3,085.55% | 2,309.01% | |
| Caterpillar Inc. | 39.37% | 19.56% | 41.77% | 43.79% | 5.50% | |
| General Electric Co. | -16.17% | 16.04% | -17.58% | -72.16% | -9.00% | |
| Honeywell International Inc. | 29.85% | 27.23% | 33.22% | 37.21% | 9.58% | |
| Lockheed Martin Corp. | 57.62% | 113.60% | 199.23% | 361.98% | — | |
| Northrop Grumman Corp. | 54.19% | 30.14% | 25.49% | 39.44% | — | |
| ROE, Sector | ||||||
| Capital Goods | 11.76% | 5.84% | 19.38% | 13.05% | — | |
| ROE, Industry | ||||||
| Industrials | 19.68% | 6.08% | 22.41% | 19.96% | — | |
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
ROE = 100 × Net income (loss) attributable to common shareowners ÷ Shareowners’ equity
= 100 × 3,864 ÷ 73,068 = 5.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Raytheon Technologies Corp. ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Return on Assets (ROA)
Raytheon Technologies Corp., ROA 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) | |
| Total assets | 161,404) | 162,153) | 139,716) | 134,211) | 96,920) | |
| Profitability Ratio | ||||||
| ROA1 | 2.39% | -2.17% | 3.96% | 3.93% | 4.70% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -3.03% | -7.80% | -0.48% | 8.91% | 8.88% | |
| Caterpillar Inc. | 7.84% | 3.83% | 7.77% | 7.83% | 0.98% | |
| General Electric Co. | -3.28% | 2.25% | -1.87% | -7.23% | -1.53% | |
| Honeywell International Inc. | 8.60% | 7.40% | 10.47% | 11.71% | 2.79% | |
| Lockheed Martin Corp. | 12.41% | 13.47% | 13.11% | 11.24% | — | |
| Northrop Grumman Corp. | 16.45% | 7.17% | 5.47% | 8.58% | — | |
| ROA, Sector | ||||||
| Capital Goods | 2.50% | 1.01% | 2.70% | 1.87% | — | |
| ROA, Industry | ||||||
| Industrials | 4.23% | 1.07% | 3.68% | 3.45% | — | |
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
ROA = 100 × Net income (loss) attributable to common shareowners ÷ Total assets
= 100 × 3,864 ÷ 161,404 = 2.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Raytheon Technologies Corp. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |