Raytheon Co. (NYSE:RTN)

The financial data over the five-year period exhibits several notable trends across key performance and leverage metrics.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios have shown a gradual improvement from 2015 through 2019. The reported ratio increased from 0.79 to 0.84, while the adjusted ratio rose from 0.79 to 0.86, indicating enhanced efficiency in utilizing assets to generate revenue.

Current Ratio

There is a consistent downward trend in both reported and adjusted current ratios, declining from 1.6 in 2015 to 1.34 in 2019. This suggests a reduction in liquidity or a tighter management of current assets relative to current liabilities over time.

Debt to Equity Ratio

The reported debt to equity ratio gradually decreased from 0.53 in 2015 to 0.39 in 2019, reflecting a more conservative approach toward leverage. The adjusted ratio follows a similar pattern, declining from 0.64 to 0.48. Overall, this indicates a reduction in financial risk related to debt financing.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios show a declining trend, with reported figures dropping from 0.34 to 0.28 and adjusted figures from 0.39 to 0.33 over the period. This aligns with the reduction in debt levels relative to the total capital base.

Financial Leverage

Financial leverage presented a moderate increase between 2015 and 2017, peaking around 3.10 (reported) and 3.14 (adjusted), before declining again towards 2019. By 2019, reported leverage settled at 2.83 and adjusted leverage at 2.90, signifying a reduction in the use of debt in the capital structure after a period of elevated leverage.

Net Profit Margin

The reported net profit margin displayed an overall upward movement from 8.92% in 2015 to 11.46% in 2019, with a notable spike in 2018. The adjusted margin fluctuated more, starting at 9.81%, dipping to a low of 6.81% in 2017, then reaching a peak of 13.42% in 2018 before decreasing to 9.09% in 2019. This variability in adjusted margins suggests some non-recurring or exceptional items affecting profitability.

Return on Equity (ROE)

The reported ROE rose from 20.48% to 27.35% over the period, indicating increasing effectiveness in generating profits from shareholders' equity. The adjusted ROE showed greater volatility, peaking sharply at 31.39% in 2018 but falling back to 22.58% in 2019, which could imply that one-time events or adjustments had significant impacts on equity returns.

Return on Assets (ROA)

Reported ROA improved steadily from 7.08% in 2015 to 9.67% in 2019, highlighting enhanced asset efficiency. Adjusted ROA, while positive, showed more variation, peaking at 11.21% in 2018 and declining thereafter. The disparity between reported and adjusted figures suggests the presence of adjustments affecting asset returns.

In summary, the company has demonstrated improved asset efficiency and profitability over the period, accompanied by a gradual reduction in leverage and liquidity ratios. The fluctuations in adjusted profitability metrics point to the influence of extraordinary items or accounting adjustments that warrant further investigation to understand underlying operational performance.

Over the five-year period ending in 2019, a consistent upward trend is evident in net sales, which increased from approximately 23,247 million to 29,176 million US dollars. This represents a steady growth trajectory in revenue generation, with year-over-year increases indicating expanding business operations or market presence.

Total assets also demonstrate a positive trend, growing from 29,281 million to 34,566 million US dollars. This growth in asset base suggests ongoing investments or acquisitions, leading to an expansion of the company's resources over the period.

Reported total asset turnover ratio

The reported total asset turnover ratio exhibited a moderate upward trend from 0.79 in 2015 to a peak of 0.85 in 2018, before slightly decreasing to 0.84 in 2019. This indicates an improving efficiency in using assets to generate sales, with a marginal decline in the last year of the period analyzed.

Adjusted total assets

The adjusted total assets metric increased steadily from 29,356 million to 34,039 million US dollars, reflecting a similar upward trend as the reported total assets, possibly accounting for adjustments that provide a different view on asset valuation or composition.

Adjusted total asset turnover ratio

The adjusted total asset turnover ratio showed continuous improvement from 0.79 in 2015 to 0.86 in 2019. This consistent increase suggests that when considering the adjusted asset base, the company enhanced its effectiveness in utilizing assets for sales generation over the entire period.

In summary, the data depicts a company experiencing steady revenue growth alongside an expanding asset base. Both reported and adjusted asset turnover ratios indicate improved efficiency in asset utilization, with the adjusted figures particularly highlighting an ongoing enhancement in productivity. The slight dip in the reported asset turnover ratio in the final year might warrant further investigation to understand underlying causes, but overall, the financial trends suggest positive operational performance and growth.

Current assets

Current assets exhibited a consistent upward trend over the five-year period, rising from $9,812 million in 2015 to $13,082 million in 2019. This represents a steady increase each year, reflecting growth in liquid resources or assets expected to be converted into cash within a year.

Current liabilities

Current liabilities also showed a rising trend, increasing from $6,126 million in 2015 to $9,791 million in 2019. The growth rate in current liabilities appears more pronounced compared to current assets, particularly noticeable in the latter years, suggesting increasing short-term obligations.

Reported current ratio

The reported current ratio demonstrates a declining pattern over the period. Starting at 1.60 in 2015, it slightly improved to 1.66 in 2016 but then consistently decreased to 1.34 by 2019. This downward trend indicates a weakening in short-term liquidity, with current liabilities growing faster than current assets.

Adjusted current assets

Adjusted current assets closely mirror the values of current assets, with a minimal difference across all years. The steady increase from $9,817 million in 2015 to $13,089 million in 2019 aligns with the trend observed in reported current assets, reinforcing the upward movement in liquid assets or near-cash items.

Adjusted current ratio

The adjusted current ratio follows the same declining trajectory as the reported current ratio, beginning at 1.60 in 2015, peaking slightly at 1.66 in 2016, and subsequently decreasing to 1.34 in 2019. This consistent decline suggests that the adjusted liquidity position weakened due to current liabilities growing more rapidly than adjusted current assets.

Overall analysis

The data reveals a clear pattern of increasing short-term assets and liabilities. While both current and adjusted current assets have grown steadily, current and adjusted current liabilities have expanded at a faster pace, resulting in a gradual decline in the current ratio and adjusted current ratio. This ratio decrease signals a potential decrease in short-term financial strength and liquidity, emphasizing a need for monitoring to ensure that liabilities do not overextend the company's ability to meet immediate obligations.

The analysis of the financial data over the five-year period reveals several noteworthy trends in the company’s capital structure and leverage ratios.

Total Debt

The total debt value remained relatively stable between 2015 and 2016, showing a negligible increase from 5330 million USD to 5335 million USD. After this period, total debt gradually declined each year, reaching 4760 million USD by the end of 2019. This indicates a consistent effort in reducing nominal debt levels over the latter part of the period.

Total Stockholders’ Equity

The stockholders’ equity exhibited a generally positive trend. It started at 10128 million USD in 2015, experienced a slight decrease until 2017, but then increased notably to 12223 million USD by 2019. This growth in equity suggests strengthening of the company’s net asset position and potential improvements in retained earnings or capital inflows.

Reported Debt to Equity Ratio

The reported debt to equity ratio shows a declining trend, moving from 0.53 in 2015 and 2016 down to 0.39 in 2019. This reduction reflects a decreased leverage based on reported figures, primarily driven by the combination of declining debt and increasing equity.

Adjusted Total Debt and Equity

Adjusted figures, which likely account for off-balance-sheet or other accounting adjustments, show a slightly different pattern. Adjusted total debt followed a similar trajectory as the reported debt, peaking at 6421 million USD in 2016 before decreasing to 5679 million USD in 2019. Adjusted total equity was relatively steady initially but increased significantly after 2017, reaching 11749 million USD in 2019.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio also declined from 0.64 in 2015 to 0.48 in 2019, consistent with the trend in reported ratios, though this ratio remains higher than the reported counterpart. The reduction suggests improving leverage and possibly a stronger equity base after adjustments.

Overall, the company exhibits a clear pattern of deleveraging over the period analyzed. Both reported and adjusted debt to equity ratios have decreased, indicating an enhanced capacity to cover debt with equity. The increase in equity alongside the reduction in debt points to a strengthening balance sheet position and a potentially more conservative financial strategy adopted during these years.

Total Debt

Total debt shows a gradual decline from 2015 to 2019, decreasing from 5,330 million USD to 4,760 million USD. The reduction is relatively steady, reflecting a consistent effort to lower gross indebtedness over the period.

Total Capital

Total capital remains relatively stable from 2015 to 2017, hovering around 15,000 million USD. However, from 2017 to 2019, there is a noticeable increase, rising to approximately 16,983 million USD by the end of 2019, indicating growth in the company’s capital base during the latter years.

Reported Debt to Capital Ratio

The reported debt to capital ratio decreases steadily from 0.34 in 2015 to 0.28 in 2019. This trend signifies an improving leverage position, suggesting the company has lowered its debt relative to its capital, enhancing financial stability over the years.

Adjusted Total Debt

Adjusted total debt starts at 6,306 million USD in 2015 and declines to 5,679 million USD by 2019. Similar to total debt, the adjusted figures depict a downward trend, confirming reductions in indebtedness when additional adjustments are considered.

Adjusted Total Capital

Adjusted total capital remains fairly constant from 2015 to 2017 but rises in 2018 before slightly decreasing in 2019, finishing near 17,428 million USD. This pattern indicates growth in the capital structure, with some minor fluctuations in the last year.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio declines from 0.39 in 2015 to 0.33 in 2019. This reduction indicates an improvement in the company's leverage position after considering adjustments, consistent with the trend observed in the reported debt to capital ratio.

The annual financial data reveals a consistent upward trend in total assets over the five-year period, increasing from US$29,281 million in 2015 to US$34,566 million in 2019. This steady growth indicates an expansion in the company's asset base.

Total stockholders’ equity demonstrates relative stability from 2015 to 2017, with values near US$10,000 million, followed by a noticeable increase in 2018 and 2019, reaching US$12,223 million by the end of 2019. This suggests strengthening equity capital in the latter years.

Reported financial leverage

The reported financial leverage ratio shows an increasing trend from 2.89 in 2015, peaking at 3.10 in 2017, before declining to 2.78 in 2018 and slightly rising to 2.83 in 2019. This pattern implies a peak in leverage around 2017, followed by a reduction, indicating a possible strategic effort to decrease reliance on debt financing.

Adjusted total assets

Adjusted total assets move upward similarly to reported total assets, rising from US$29,356 million in 2015 to US$34,039 million in 2019. The adjustments appear to have a marginal impact on absolute values but follow the same growth trajectory, reflecting the company's expanding asset base.

Adjusted total equity

Adjusted equity remains relatively constant at approximately US$9,800 million from 2015 through 2017, increasing significantly in 2018 to around US$11,566 million, and slightly rising in 2019 to US$11,749 million. This trend closely parallels the pattern observed in reported equity, indicating strengthened capital positions after 2017.

Adjusted financial leverage

This ratio rises from 2.99 in 2015 to a peak of 3.14 in 2017, before declining to 2.8 in 2018 and marginally increasing to 2.9 in 2019. The shape of this curve aligns with the reported financial leverage metric, confirming reduced leverage after 2017 and a slight uptick thereafter.

Overall, the data indicates that the company has been increasing its asset base steadily while managing to strengthen equity, especially after 2017. The financial leverage ratios peak in 2017 and then moderate, suggesting a strategic shift towards reducing debt or improving the equity component of financing. The consistent patterns between reported and adjusted figures reinforce the reliability of these observations.

The financial data over the five-year period reveals notable trends in profitability and sales performance. Net sales exhibited a steady upward trajectory, increasing consistently from 23,247 million US dollars in 2015 to 29,176 million US dollars in 2019. This indicates a sustained growth in revenue generation year over year.

Net income attributable to the company

Net income showed moderate growth from 2,074 million US dollars in 2015 to 3,343 million US dollars in 2019, with a dip in 2017 at 2,024 million before a significant rise in 2018 and 2019. This suggests fluctuations in profitability but an overall positive trend.

Reported net profit margin

The reported net profit margin varied from 8.92% in 2015 to a high of 11.46% in 2019, reflecting improved efficiency and profitability. A temporary decline occurred in 2017 to 7.98%, followed by a strong recovery in subsequent years.

Adjusted net income

Adjusted net income displayed a less consistent pattern, decreasing from 2,281 million in 2015 to 1,727 million in 2017, then sharply increasing to 3,631 million in 2018 before falling to 2,653 million in 2019. This volatility suggests the presence of non-recurring factors or accounting adjustments impacting net income.

Adjusted net profit margin

The adjusted net profit margin followed a similar cyclical trend, decreasing from 9.81% in 2015 to 6.81% in 2017, then increasing markedly to 13.42% in 2018 and declining again to 9.09% in 2019. The fluctuations imply variability in operational profitability after adjustments for non-recurring items.

Overall, the data indicates consistent growth in sales with corresponding increases in reported profitability metrics, albeit with some volatility in adjusted profit figures. The company demonstrated resilience and ability to improve margins in the latter years, particularly evident in 2018, though the adjusted results suggest underlying variability that may warrant further investigation.

The financial data reveals a generally positive trend in profitability and equity over the five-year period from 2015 to 2019. Net income attributable to the company showed fluctuations but an upward trajectory overall, beginning at $2,074 million in 2015, experiencing a slight dip in 2017 to $2,024 million, and then rising significantly to $3,343 million by 2019.

Total stockholders’ equity demonstrated moderate growth, increasing from $10,128 million in 2015 to $12,223 million in 2019. This steady growth in equity reflects an accumulation of value for shareholders over these years.

Reported Return on Equity (ROE)

The reported ROE values indicate strong profitability, with a steady increase from 20.48% in 2015 to 27.35% in 2019. This improvement suggests enhanced efficiency in generating earnings relative to the equity base.

Adjusted net income

Adjusted net income figures present more volatility. After an initial rise to $2,281 million in 2015, adjusted income dropped to $1,727 million by 2017, followed by a substantial spike to $3,631 million in 2018, before declining again to $2,653 million in 2019. This pattern may indicate the impact of one-time items or adjustments in earnings components across the years.

Adjusted total equity

The adjusted total equity aligns closely with the reported equity values, showing a gradual increase from $9,803 million in 2015 to $11,749 million in 2019. This stability suggests that the adjustments applied do not materially alter the equity base's trend.

Adjusted Return on Equity

Adjusted ROE exhibits more pronounced variability than reported ROE. It starts at a high of 23.27% in 2015, declines to 17.36% by 2017, peaks sharply at 31.39% in 2018, and then falls to 22.58% in 2019. The significant spike in 2018 corresponds with the surge in adjusted net income, underscoring the influence of adjustments on profitability metrics.

In summary, the company exhibited consistent growth in equity and an overall upward trend in reported profitability. However, adjusted figures highlight some volatility in earnings and returns, suggesting that certain periods included exceptional items impacting adjusted results. The increase in both net income and ROE toward the end of the period indicates improved financial performance and efficient utilization of equity resources.

The financial data over the five-year period reveals several key trends in profitability and asset base development. Net income attributable to the company shows a generally upward trajectory, increasing from 2074 million US dollars in 2015 to 3343 million US dollars by the end of 2019, with a notable peak in 2018 at 2909 million US dollars before rising further in 2019.

Total assets exhibit a steady, gradual increase from 29281 million US dollars in 2015 to 34566 million US dollars in 2019, reflecting steady asset growth without abrupt fluctuations. This consistent asset base expansion suggests ongoing investments or accumulation of resources over the period.

Reported Return on Assets (ROA) follows a somewhat fluctuating but overall positive pattern. There is a slight increase from 7.08% in 2015 to 7.36% in 2016, followed by a decline to 6.56% in 2017. Subsequently, ROA significantly improves in 2018 and continues upward to reach a peak of 9.67% in 2019, indicating improved efficiency in asset utilization to generate net income during the latter years.

The adjusted financial metrics present a more variable trend. Adjusted net income declines from 2281 million US dollars in 2015 down to 1727 million US dollars in 2017, before surging sharply to 3631 million US dollars in 2018. This sudden increase is then followed by a decrease to 2653 million US dollars in 2019. This volatility may suggest the impact of one-time adjustments or extraordinary items affecting profitability.

Adjusted total assets follow a similar upward path as total assets, rising from 29356 million US dollars in 2015 to 34039 million US dollars in 2019, evidencing a continuous asset growth trend consistent with the reported figures.

Adjusted ROA exhibits more pronounced fluctuation compared to reported ROA. It decreases from 7.77% in 2015 to a low of 5.53% in 2017, then sharply increases to 11.21% in 2018 before falling again to 7.79% in 2019. This indicates substantial variations in performance when adjusting for certain factors, highlighting the significant impact of adjustments on profitability measurement through ROA.

Summary of Trends

Net income generally increases over the period, with a peak in the latter years.

Total assets grow steadily, indicating ongoing investment or asset accumulation.

Reported ROA fluctuates but improves notably in 2018 and 2019.

Adjusted net income and adjusted ROA show greater volatility, with a pronounced peak in 2018.

Both reported and adjusted asset values indicate consistent growth.

The variability in adjusted figures suggests sensitivity to specific adjustments impacting profitability metrics.