Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Raytheon Co. pages available for free this week:
- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Current Ratio since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Raytheon Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Long-term Activity Ratios (Summary)
Raytheon Co., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).
- Net Fixed Asset Turnover
-
The net fixed asset turnover ratio shows a declining trend over the observed periods. Starting from values above 11.5 in early 2016, the ratio gradually decreased to 8.7 by the end of 2019. This indicates a reduction in the efficiency with which the company utilized its net fixed assets to generate sales over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
This ratio also presents a downward trajectory but displays a more pronounced decline starting in early 2019, falling from approximately 9.53 to 6.9 by the end of 2019. Such a decline suggests that when incorporating right-of-use assets from operating leases, the turnover efficiency decreases more sharply, possibly reflecting changes in asset base composition or accounting standards impacting leased assets.
- Total Asset Turnover
-
The total asset turnover ratio remains relatively stable throughout the periods analyzed, fluctuating narrowly between 0.79 and 0.88. This stability implies consistent asset utilization for generating revenue. There is a slight improvement in mid to late 2018, peaking near 0.88, followed by minor fluctuations, yet no significant trend of increase or decrease.
- Equity Turnover
-
The equity turnover ratio exhibits moderate variability but no decisive trend. The ratio mostly fluctuates between 2.2 and 2.5, with some periods showing increases, such as in early 2017 and early 2018, and others showing slight declines. This suggests relatively stable usage of equity in generating sales, with minor shifts potentially attributable to changes in shareholder equity or sales levels.
Net Fixed Asset Turnover
Raytheon Co., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).
1 Q4 2019 Calculation
Net fixed asset turnover
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrate a generally upward trajectory throughout the observed periods. Initially, sales increased from 5,288 million USD in March 2015 to a peak around 6,783 million USD by December 2017. There are periodic fluctuations, with dips notably around April 2016 and April 2018, but the overall trend remains positive. From early 2018 onwards, net sales consistently rise, reaching 7,842 million USD by the end of 2019. This suggests growth in the company's revenue generation capacity over the almost five-year span.
- Property, Plant and Equipment, Net
- The value of property, plant, and equipment exhibited a steady increase throughout the entire period. Starting from 1,906 million USD in March 2015, the asset base rose consistently each quarter, reaching 3,353 million USD by December 2019. This growth reflects continued investment in fixed assets, possibly indicating expansion or modernization efforts to support operations. The steady increases also imply a commitment to maintaining or improving production and operational capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio shows a clear declining trend over time. Data from December 2015 onwards illustrate a decrease from roughly 11.59 to 8.7 by December 2019. This decline indicates that although the net sales increase, the efficiency with which the company utilizes its fixed assets to generate sales has diminished. The gradual reduction could suggest that asset growth is outpacing sales growth, or that newer assets have not yet been fully capitalized upon in revenue generation, or possibly both factors.
- Overall Observations
- The aligned trends of increasing net sales and expanding property, plant, and equipment reflect business growth and investment activity. However, the decreasing fixed asset turnover ratio signals a declining efficiency in asset usage. This ratio decline warrants monitoring, as it may affect profitability and capital utilization effectiveness if the trend continues. Management may need to assess strategies to enhance the productivity and deployment of fixed assets to sustain or improve operational efficiency.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Raytheon Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||
| Operating lease right-of-use assets | ||||||||||||||||||||||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).
1 Q4 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed quarterly periods. Net sales demonstrate a generally increasing trajectory despite some fluctuations. After a rise from 5,288 million US dollars in March 2015 to a peak of 6,328 million by December 2015, sales experienced a slight dip and subsequent recovery, culminating in a substantial growth to 7,842 million by December 2019. This upward trend indicates an overall expansion in revenue generation capacity over the four-year span.
Simultaneously, the net value of property, plant, and equipment, including operating lease right-of-use assets, shows a steadily increasing pattern. Starting at 1,906 million US dollars in March 2015, this asset base grows consistently through the periods, reaching 4,228 million by the end of 2019. The significant increase in fixed assets especially from 2018 onwards suggests an ongoing investment in physical and operational infrastructure.
Regarding operational efficiency, the net fixed asset turnover ratio reveals a declining trend. Initial values around 11.59 in late 2015 gradually decrease to 6.90 by December 2019. This ratio, reflecting how effectively the company leverages its fixed assets to generate net sales, indicates a diminished efficiency over time. Despite rising sales, the faster growth rate of fixed assets results in a lower turnover ratio.
- Net Sales
- Show a general upward trend, increasing from approximately 5.3 billion US dollars in early 2015 to 7.8 billion by the end of 2019.
- Exhibit short-term fluctuations but maintain an overall growth trajectory.
- Property, Plant, and Equipment (Net)
- Display continuous increase throughout the periods, more than doubling from about 1.9 billion to over 4.2 billion US dollars.
- Suggests ongoing investment and expansion of operational capacity.
- Net Fixed Asset Turnover
- Declines progressively from around 11.6 to 6.9 over the reported quarters.
- Indicates decreased efficiency in using fixed assets to generate sales, likely due to the rapid asset base expansion outpacing sales growth.
Total Asset Turnover
Raytheon Co., total asset turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).
1 Q4 2019 Calculation
Total asset turnover
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's operations and asset management over the observed periods.
- Net Sales
- Net sales displayed a generally upward trajectory throughout the timeframe. Starting from US$5,288 million in the first quarter of 2015, sales experienced fluctuations with intermittent declines, such as the dip observed in the second quarter of 2016. However, from early 2017 onwards, net sales showed a consistent increase, ultimately reaching US$7,842 million by the final quarter of 2019. This growth suggests strengthening market demand or successful sales strategies during the latter periods.
- Total Assets
- Total assets also increased over the period, beginning at US$27,798 million in the first quarter of 2015 and rising to US$34,566 million by the end of 2019. While the asset base expanded steadily, some quarters exhibited minor decreases or stabilization, reflecting possible asset disposals, depreciation effects, or investment timing. Overall, the asset increase indicates reinvestment or acquisition efforts that may support business growth and operational capacity.
- Total Asset Turnover
- The total asset turnover ratio, available from the fourth quarter of 2015 onwards, remained relatively stable, fluctuating between 0.79 and 0.88. This ratio measures the efficiency in utilizing assets to generate sales. The gradual improvement in this ratio, particularly towards the later years, suggests enhanced efficiency in asset utilization, even as the asset base expanded. The peak of 0.88 in the fourth quarter of 2018 indicates a particularly effective period in converting assets into revenues.
In summary, the data reflects a positive growth pattern in net sales accompanied by a steady expansion of total assets. The consistent asset turnover ratios signal that the company's asset management has been effective in supporting increased sales volumes. These combined trends may point to operational improvements and strategic asset investments that have enhanced overall performance during the observed period.
Equity Turnover
Raytheon Co., equity turnover calculation (quarterly data)
| Dec 31, 2019 | Sep 29, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jul 1, 2018 | Apr 1, 2018 | Dec 31, 2017 | Oct 1, 2017 | Jul 2, 2017 | Apr 2, 2017 | Dec 31, 2016 | Oct 2, 2016 | Jul 3, 2016 | Apr 3, 2016 | Dec 31, 2015 | Sep 27, 2015 | Jun 28, 2015 | Mar 29, 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||
| Total Raytheon Company stockholders’ equity | ||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-07-01), 10-Q (reporting date: 2018-04-01), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-10-01), 10-Q (reporting date: 2017-07-02), 10-Q (reporting date: 2017-04-02), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-10-02), 10-Q (reporting date: 2016-07-03), 10-Q (reporting date: 2016-04-03), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-27), 10-Q (reporting date: 2015-06-28), 10-Q (reporting date: 2015-03-29).
1 Q4 2019 Calculation
Equity turnover
= (Net salesQ4 2019
+ Net salesQ3 2019
+ Net salesQ2 2019
+ Net salesQ1 2019)
÷ Total Raytheon Company stockholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
-
Net sales exhibit a generally upward trajectory over the analyzed quarters. Beginning at 5,288 million USD in the first quarter of 2015, net sales rose steadily with only minor fluctuations, reaching a peak of 7,842 million USD by the end of 2019. Notable increases occurred particularly in the periods from late 2017 through 2018 and into 2019, indicating accelerating revenue growth during these intervals. Some periods, such as from March 2015 to April 2016, saw moderate variability, but the overarching trend remained positive.
- Total Stockholders’ Equity
-
The total stockholders’ equity showed relative stability with a moderate upward bias throughout the period. Starting at 9,707 million USD in early 2015, equity fluctuated slightly but generally increased over time, surpassing 12,000 million USD in mid-2019. Occasional dips are observed, particularly at the end of 2016 and the end of 2017, where equity temporarily decreased before resuming an upward movement. The long-term pattern suggests consistent capital accumulation or retained earnings growth.
- Equity Turnover Ratio
-
The equity turnover ratio, available from late 2015 onwards, remained relatively stable within a narrow range, typically oscillating between approximately 2.21 and 2.54. The ratio peaked slightly in late 2017 at 2.54, implying more efficient use of equity to generate sales in that quarter. However, subsequent quarters experienced a gradual decline toward the lower end of the range by the end of 2019. Overall, this suggests that the efficiency with which equity supports sales generation remained steady over time with mild cyclical variation.
- Summary
-
The data indicate a consistent improvement in net sales accompanied by gradual growth in stockholders’ equity. Meanwhile, the equity turnover ratio remained stable, suggesting that increases in sales were generally matched by corresponding changes in equity levels. This balance points to steady operational expansion without significant changes in capital structure or financial leverage. Minor fluctuations in both equity and equity turnover ratio suggest routine operational adjustments but no major financial disruptions.