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 Co., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Raytheon Co. debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019. |
| 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 Co. debt to equity ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Raytheon Co. debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019. |
| 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 Co. debt to capital ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Raytheon Co. debt to assets ratio improved from 2017 to 2018 and 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 Co. debt to assets ratio (including operating lease liability) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Raytheon Co. financial leverage ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Raytheon Co. interest coverage ratio improved 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 Co. fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity
Raytheon Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and current portion of long-term debt | 1,499) | 300) | 300) | —) | —) | |
| Long-term debt, excluding current portion | 3,261) | 4,755) | 4,750) | 5,335) | 5,330) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.58 | — | — | — | — | |
| Eaton Corp. plc | 0.52 | — | — | — | — | |
| GE Aerospace | 3.21 | — | — | — | — | |
| Honeywell International Inc. | 0.87 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 1.04 | — | — | — | — | |
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 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 Co. debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Equity (including Operating Lease Liability)
Raytheon Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and current portion of long-term debt | 1,499) | 300) | 300) | —) | —) | |
| Long-term debt, excluding current portion | 3,261) | 4,755) | 4,750) | 5,335) | 5,330) | |
| Total debt | 4,760) | 5,055) | 5,050) | 5,335) | 5,330) | |
| Operating lease liabilities, current | 213) | —) | —) | —) | —) | |
| Operating lease liabilities, noncurrent | 706) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 5,679) | 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 equity (including operating lease liability)1 | 0.46 | 0.44 | 0.51 | 0.53 | 0.53 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 2.62 | — | — | — | — | |
| Eaton Corp. plc | 0.55 | — | — | — | — | |
| GE Aerospace | 3.32 | — | — | — | — | |
| Honeywell International Inc. | 0.90 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 1.11 | — | — | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Raytheon Company stockholders’ equity
= 5,679 ÷ 12,223 = 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 Co. debt to equity ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Debt to Capital
Raytheon Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and current portion of long-term debt | 1,499) | 300) | 300) | —) | —) | |
| Long-term debt, excluding current portion | 3,261) | 4,755) | 4,750) | 5,335) | 5,330) | |
| 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) | |
| 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 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.46 | — | — | — | — | |
| Caterpillar Inc. | 0.72 | — | — | — | — | |
| Eaton Corp. plc | 0.34 | — | — | — | — | |
| GE Aerospace | 0.76 | — | — | — | — | |
| Honeywell International Inc. | 0.46 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 0.51 | — | — | — | — | |
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 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 Co. debt to capital ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Capital (including Operating Lease Liability)
Raytheon Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and current portion of long-term debt | 1,499) | 300) | 300) | —) | —) | |
| Long-term debt, excluding current portion | 3,261) | 4,755) | 4,750) | 5,335) | 5,330) | |
| Total debt | 4,760) | 5,055) | 5,050) | 5,335) | 5,330) | |
| Operating lease liabilities, current | 213) | —) | —) | —) | —) | |
| Operating lease liabilities, noncurrent | 706) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 5,679) | 5,055) | 5,050) | 5,335) | 5,330) | |
| Total Raytheon Company stockholders’ equity | 12,223) | 11,472) | 9,963) | 10,066) | 10,128) | |
| Total capital (including operating lease liability) | 17,902) | 16,527) | 15,013) | 15,401) | 15,458) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.32 | 0.31 | 0.34 | 0.35 | 0.34 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.43 | — | — | — | — | |
| Caterpillar Inc. | 0.72 | — | — | — | — | |
| Eaton Corp. plc | 0.35 | — | — | — | — | |
| GE Aerospace | 0.77 | — | — | — | — | |
| Honeywell International Inc. | 0.47 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 0.53 | — | — | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,679 ÷ 17,902 = 0.32
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 Co. debt to capital ratio (including operating lease liability) improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Debt to Assets
Raytheon Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and current portion of long-term debt | 1,499) | 300) | 300) | —) | —) | |
| Long-term debt, excluding current portion | 3,261) | 4,755) | 4,750) | 5,335) | 5,330) | |
| Total debt | 4,760) | 5,055) | 5,050) | 5,335) | 5,330) | |
| Total assets | 34,566) | 31,864) | 30,860) | 30,052) | 29,281) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.14 | 0.16 | 0.16 | 0.18 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.20 | — | — | — | — | |
| Caterpillar Inc. | 0.48 | — | — | — | — | |
| Eaton Corp. plc | 0.25 | — | — | — | — | |
| GE Aerospace | 0.34 | — | — | — | — | |
| Honeywell International Inc. | 0.27 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 0.31 | — | — | — | — | |
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 assets = Total debt ÷ Total assets
= 4,760 ÷ 34,566 = 0.14
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 Co. debt to assets ratio improved from 2017 to 2018 and from 2018 to 2019. |
Debt to Assets (including Operating Lease Liability)
Raytheon Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Commercial paper and current portion of long-term debt | 1,499) | 300) | 300) | —) | —) | |
| Long-term debt, excluding current portion | 3,261) | 4,755) | 4,750) | 5,335) | 5,330) | |
| Total debt | 4,760) | 5,055) | 5,050) | 5,335) | 5,330) | |
| Operating lease liabilities, current | 213) | —) | —) | —) | —) | |
| Operating lease liabilities, noncurrent | 706) | —) | —) | —) | —) | |
| Total debt (including operating lease liability) | 5,679) | 5,055) | 5,050) | 5,335) | 5,330) | |
| Total assets | 34,566) | 31,864) | 30,860) | 30,052) | 29,281) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.16 | 0.16 | 0.16 | 0.18 | 0.18 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.21 | — | — | — | — | |
| Caterpillar Inc. | 0.49 | — | — | — | — | |
| Eaton Corp. plc | 0.27 | — | — | — | — | |
| GE Aerospace | 0.35 | — | — | — | — | |
| Honeywell International Inc. | 0.28 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 0.33 | — | — | — | — | |
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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,679 ÷ 34,566 = 0.16
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 Co. debt to assets ratio (including operating lease liability) improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Financial Leverage
Raytheon Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 5.38 | — | — | — | — | |
| Eaton Corp. plc | 2.04 | — | — | — | — | |
| GE Aerospace | 9.40 | — | — | — | — | |
| Honeywell International Inc. | 3.17 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 3.34 | — | — | — | — | |
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 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 Co. financial leverage ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019. |
Interest Coverage
Raytheon Co., interest coverage calculation, comparison to benchmarks
| 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 Raytheon Company | 3,343) | 2,909) | 2,024) | 2,211) | 2,074) | |
| Add: Net income attributable to noncontrolling interest | (14) | (27) | (23) | (37) | (7) | |
| Less: Income (loss) from discontinued operations, net of tax | 1) | (1) | 2) | 1) | 13) | |
| Add: Income tax expense | 658) | 264) | 1,114) | 857) | 733) | |
| Add: Interest expense | 180) | 184) | 205) | 232) | 233) | |
| Earnings before interest and tax (EBIT) | 4,166) | 3,331) | 3,318) | 3,262) | 3,020) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 23.14 | 18.10 | 16.19 | 14.06 | 12.96 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -2.19 | — | — | — | — | |
| Caterpillar Inc. | 19.62 | — | — | — | — | |
| Eaton Corp. plc | 11.98 | — | — | — | — | |
| GE Aerospace | 1.27 | — | — | — | — | |
| Honeywell International Inc. | 22.17 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 5.65 | — | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 4,166 ÷ 180 = 23.14
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 Co. interest coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |
Fixed Charge Coverage
Raytheon Co., fixed charge coverage calculation, comparison to benchmarks
| 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 Raytheon Company | 3,343) | 2,909) | 2,024) | 2,211) | 2,074) | |
| Add: Net income attributable to noncontrolling interest | (14) | (27) | (23) | (37) | (7) | |
| Less: Income (loss) from discontinued operations, net of tax | 1) | (1) | 2) | 1) | 13) | |
| Add: Income tax expense | 658) | 264) | 1,114) | 857) | 733) | |
| Add: Interest expense | 180) | 184) | 205) | 232) | 233) | |
| Earnings before interest and tax (EBIT) | 4,166) | 3,331) | 3,318) | 3,262) | 3,020) | |
| Add: Operating lease cost | 240) | 236) | 232) | 239) | 236) | |
| Earnings before fixed charges and tax | 4,406) | 3,567) | 3,550) | 3,501) | 3,256) | |
| Interest expense | 180) | 184) | 205) | 232) | 233) | |
| Operating lease cost | 240) | 236) | 232) | 239) | 236) | |
| Fixed charges | 420) | 420) | 437) | 471) | 469) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 10.49 | 8.49 | 8.12 | 7.43 | 6.94 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -1.19 | — | — | — | — | |
| Caterpillar Inc. | 13.01 | — | — | — | — | |
| Eaton Corp. plc | 7.45 | — | — | — | — | |
| GE Aerospace | 1.09 | — | — | — | — | |
| Honeywell International Inc. | 14.06 | — | — | — | — | |
| Lockheed Martin Corp. | — | — | — | — | — | |
| RTX Corp. | 4.31 | — | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,406 ÷ 420 = 10.49
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 Co. fixed charge coverage ratio improved from 2017 to 2018 and from 2018 to 2019. |