Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Raytheon Co., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Raytheon Co. gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Raytheon Co. operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Raytheon Co. net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Raytheon Co. ROE improved from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Raytheon Co. ROA improved from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
Raytheon Co., gross profit margin 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) | ||||||
| Gross margin | 7,763) | 7,485) | 6,272) | 6,122) | 5,673) | |
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 26.61% | 27.66% | 24.74% | 25.44% | 24.40% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Boeing Co. | 5.83% | — | — | — | — | |
| Caterpillar Inc. | 27.83% | — | — | — | — | |
| Eaton Corp. plc | 32.97% | — | — | — | — | |
| GE Aerospace | 23.52% | — | — | — | — | |
| Honeywell International Inc. | 33.70% | — | — | — | — | |
| Lockheed Martin Corp. | 13.99% | — | — | — | — | |
| RTX Corp. | 25.93% | — | — | — | — | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 7,763 ÷ 29,176 = 26.61%
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 Co. gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Operating Profit Margin
Raytheon Co., operating profit margin 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) | ||||||
| Operating income | 4,774) | 4,538) | 3,318) | 3,240) | 3,013) | |
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 16.36% | 16.77% | 13.09% | 13.46% | 12.96% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Boeing Co. | -2.58% | — | — | — | — | |
| Caterpillar Inc. | 16.33% | — | — | — | — | |
| Eaton Corp. plc | 13.38% | — | — | — | — | |
| GE Aerospace | 12.84% | — | — | — | — | |
| Honeywell International Inc. | 18.66% | — | — | — | — | |
| Lockheed Martin Corp. | 14.29% | — | — | — | — | |
| RTX Corp. | 11.64% | — | — | — | — | |
| Operating Profit Margin, Sector | ||||||
| Capital Goods | 10.93% | — | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Industrials | 9.67% | — | — | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 4,774 ÷ 29,176 = 16.36%
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 Co. operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Net Profit Margin
Raytheon Co., net profit margin 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) | |
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Boeing Co. | -0.83% | — | — | — | — | |
| Caterpillar Inc. | 12.00% | — | — | — | — | |
| Eaton Corp. plc | 10.34% | — | — | — | — | |
| GE Aerospace | -5.69% | — | — | — | — | |
| Honeywell International Inc. | 16.73% | — | — | — | — | |
| Lockheed Martin Corp. | 10.42% | — | — | — | — | |
| RTX Corp. | 7.19% | — | — | — | — | |
| Net Profit Margin, Sector | ||||||
| Capital Goods | 5.03% | — | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Industrials | 3.90% | — | — | — | — | |
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 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 Co. net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019. |
Return on Equity (ROE)
Raytheon Co., ROE 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) | |
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 41.77% | — | — | — | — | |
| Eaton Corp. plc | 13.75% | — | — | — | — | |
| GE Aerospace | -17.58% | — | — | — | — | |
| Honeywell International Inc. | 33.22% | — | — | — | — | |
| Lockheed Martin Corp. | 199.23% | — | — | — | — | |
| RTX Corp. | 13.25% | — | — | — | — | |
| ROE, Sector | ||||||
| Capital Goods | 18.11% | — | — | — | — | |
| ROE, Industry | ||||||
| Industrials | 13.76% | — | — | — | — | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Raytheon Co. ROE improved from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
Raytheon Co., ROA 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) | |
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Boeing Co. | -0.48% | — | — | — | — | |
| Caterpillar Inc. | 7.77% | — | — | — | — | |
| Eaton Corp. plc | 6.74% | — | — | — | — | |
| GE Aerospace | -1.87% | — | — | — | — | |
| Honeywell International Inc. | 10.47% | — | — | — | — | |
| Lockheed Martin Corp. | 13.11% | — | — | — | — | |
| RTX Corp. | 3.96% | — | — | — | — | |
| ROA, Sector | ||||||
| Capital Goods | 2.72% | — | — | — | — | |
| ROA, Industry | ||||||
| Industrials | 2.39% | — | — | — | — | |
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
ROA = 100 × Net income attributable to Raytheon Company ÷ Total assets
= 100 × 3,343 ÷ 34,566 = 9.67%
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 Co. ROA improved from 2017 to 2018 and from 2018 to 2019. |