Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Raytheon Co., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported	0.84	0.85	0.82	0.80	0.79
Adjusted	0.86	0.84	0.81	0.79	0.79
Liquidity Ratio
Current Ratio
Reported	1.34	1.46	1.54	1.66	1.60
Adjusted	1.34	1.47	1.54	1.66	1.60
Solvency Ratios
Debt to Equity
Reported	0.39	0.44	0.51	0.53	0.53
Adjusted	0.48	0.51	0.60	0.66	0.64
Debt to Capital
Reported	0.28	0.31	0.34	0.35	0.34
Adjusted	0.33	0.34	0.37	0.40	0.39
Financial Leverage
Reported	2.83	2.78	3.10	2.99	2.89
Adjusted	2.90	2.80	3.14	3.11	2.99
Profitability Ratios
Net Profit Margin
Reported	11.46%	10.75%	7.98%	9.19%	8.92%
Adjusted	9.09%	13.42%	6.81%	8.52%	9.81%
Return on Equity (ROE)
Reported	27.35%	25.36%	20.32%	21.97%	20.48%
Adjusted	22.58%	31.39%	17.36%	20.97%	23.27%
Return on Assets (ROA)
Reported	9.67%	9.13%	6.56%	7.36%	7.08%
Adjusted	7.79%	11.21%	5.53%	6.74%	7.77%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Raytheon Co. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Raytheon Co. adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Raytheon Co. adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Raytheon Co. adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Raytheon Co. adjusted financial leverage ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Raytheon Co. adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Raytheon Co. adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Raytheon Co. adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Raytheon Co., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales	29,176)	27,058)	25,348)	24,069)	23,247)
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)
Activity Ratio
Total asset turnover¹	0.84	0.85	0.82	0.80	0.79
Adjusted
Selected Financial Data (US$ in millions)
Net sales	29,176)	27,058)	25,348)	24,069)	23,247)
Adjusted total assets²	34,039)	32,387)	31,240)	30,393)	29,356)
Activity Ratio
Adjusted total asset turnover³	0.86	0.84	0.81	0.79	0.79

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Total asset turnover = Net sales ÷ Total assets
= 29,176 ÷ 34,566 = 0.84

² Adjusted total assets. See details »

³ 2019 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 29,176 ÷ 34,039 = 0.86

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Raytheon Co. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets	13,082)	12,136)	11,326)	10,678)	9,812)
Current liabilities	9,791)	8,288)	7,348)	6,427)	6,126)
Liquidity Ratio
Current ratio¹	1.34	1.46	1.54	1.66	1.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets²	13,089)	12,148)	11,334)	10,686)	9,817)
Current liabilities	9,791)	8,288)	7,348)	6,427)	6,126)
Liquidity Ratio
Adjusted current ratio³	1.34	1.47	1.54	1.66	1.60

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 13,082 ÷ 9,791 = 1.34

² Adjusted current assets. See details »

³ 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 13,089 ÷ 9,791 = 1.34

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Raytheon Co. adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt	4,760)	5,055)	5,050)	5,335)	5,330)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Solvency Ratio
Debt to equity¹	0.39	0.44	0.51	0.53	0.53
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	5,679)	5,897)	5,959)	6,421)	6,306)
Adjusted total equity³	11,749)	11,566)	9,951)	9,777)	9,803)
Solvency Ratio
Adjusted debt to equity⁴	0.48	0.51	0.60	0.66	0.64

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Debt to equity = Total debt ÷ Total Raytheon Company stockholders’ equity
= 4,760 ÷ 12,223 = 0.39

² Adjusted total debt. See details »

³ Adjusted total equity. See details »

⁴ 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 5,679 ÷ 11,749 = 0.48

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Raytheon Co. adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt	4,760)	5,055)	5,050)	5,335)	5,330)
Total capital	16,983)	16,527)	15,013)	15,401)	15,458)
Solvency Ratio
Debt to capital¹	0.28	0.31	0.34	0.35	0.34
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt²	5,679)	5,897)	5,959)	6,421)	6,306)
Adjusted total capital³	17,428)	17,463)	15,910)	16,198)	16,109)
Solvency Ratio
Adjusted debt to capital⁴	0.33	0.34	0.37	0.40	0.39

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,760 ÷ 16,983 = 0.28

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 5,679 ÷ 17,428 = 0.33

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Raytheon Co. adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Solvency Ratio
Financial leverage¹	2.83	2.78	3.10	2.99	2.89
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets²	34,039)	32,387)	31,240)	30,393)	29,356)
Adjusted total equity³	11,749)	11,566)	9,951)	9,777)	9,803)
Solvency Ratio
Adjusted financial leverage⁴	2.90	2.80	3.14	3.11	2.99

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Financial leverage = Total assets ÷ Total Raytheon Company stockholders’ equity
= 34,566 ÷ 12,223 = 2.83

² Adjusted total assets. See details »

³ Adjusted total equity. See details »

⁴ 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 34,039 ÷ 11,749 = 2.90

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Raytheon Co. adjusted financial leverage ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Net sales	29,176)	27,058)	25,348)	24,069)	23,247)
Profitability Ratio
Net profit margin¹	11.46%	10.75%	7.98%	9.19%	8.92%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income²	2,653)	3,631)	1,727)	2,050)	2,281)
Net sales	29,176)	27,058)	25,348)	24,069)	23,247)
Profitability Ratio
Adjusted net profit margin³	9.09%	13.42%	6.81%	8.52%	9.81%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
Net profit margin = 100 × Net income attributable to Raytheon Company ÷ Net sales
= 100 × 3,343 ÷ 29,176 = 11.46%

² Adjusted net income. See details »

³ 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,653 ÷ 29,176 = 9.09%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Raytheon Co. adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Total Raytheon Company stockholders’ equity	12,223)	11,472)	9,963)	10,066)	10,128)
Profitability Ratio
ROE¹	27.35%	25.36%	20.32%	21.97%	20.48%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income²	2,653)	3,631)	1,727)	2,050)	2,281)
Adjusted total equity³	11,749)	11,566)	9,951)	9,777)	9,803)
Profitability Ratio
Adjusted ROE⁴	22.58%	31.39%	17.36%	20.97%	23.27%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
ROE = 100 × Net income attributable to Raytheon Company ÷ Total Raytheon Company stockholders’ equity
= 100 × 3,343 ÷ 12,223 = 27.35%

² Adjusted net income. See details »

³ Adjusted total equity. See details »

⁴ 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted total equity
= 100 × 2,653 ÷ 11,749 = 22.58%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Raytheon Co. adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Total assets	34,566)	31,864)	30,860)	30,052)	29,281)
Profitability Ratio
ROA¹	9.67%	9.13%	6.56%	7.36%	7.08%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income²	2,653)	3,631)	1,727)	2,050)	2,281)
Adjusted total assets³	34,039)	32,387)	31,240)	30,393)	29,356)
Profitability Ratio
Adjusted ROA⁴	7.79%	11.21%	5.53%	6.74%	7.77%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ 2019 Calculation
ROA = 100 × Net income attributable to Raytheon Company ÷ Total assets
= 100 × 3,343 ÷ 34,566 = 9.67%

² Adjusted net income. See details »

³ Adjusted total assets. See details »

⁴ 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,653 ÷ 34,039 = 7.79%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Raytheon Co. adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Raytheon Co. (NYSE:RTN)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Raytheon Co., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)