Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Raytheon Co., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Raytheon Co. inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Raytheon Co. receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Raytheon Co. payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Raytheon Co. working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Raytheon Co. number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Raytheon Co. operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Raytheon Co. number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Raytheon Co. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |
Inventory Turnover
Raytheon Co., inventory turnover 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) | ||||||
| Cost of sales, products and services | 21,413) | 19,573) | 19,076) | 17,947) | 17,574) | |
| Inventories | 671) | 758) | 594) | 659) | 635) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 31.91 | 25.82 | 32.11 | 27.23 | 27.68 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Boeing Co. | 0.94 | — | — | — | — | |
| Caterpillar Inc. | 3.25 | — | — | — | — | |
| Eaton Corp. plc | 5.11 | — | — | — | — | |
| GE Aerospace | 4.74 | — | — | — | — | |
| Honeywell International Inc. | 5.51 | — | — | — | — | |
| Lockheed Martin Corp. | 14.22 | — | — | — | — | |
| RTX Corp. | 5.21 | — | — | — | — | |
| Inventory Turnover, Sector | ||||||
| Capital Goods | 2.61 | — | — | — | — | |
| Inventory Turnover, Industry | ||||||
| Industrials | 3.94 | — | — | — | — | |
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
Inventory turnover = Cost of sales, products and services ÷ Inventories
= 21,413 ÷ 671 = 31.91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Raytheon Co. inventory turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Receivables Turnover
Raytheon Co., receivables turnover 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 sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Receivables, net | 1,364) | 1,648) | 1,324) | 1,218) | 1,169) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 21.39 | 16.42 | 19.15 | 19.76 | 19.89 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Boeing Co. | 23.44 | — | — | — | — | |
| Caterpillar Inc. | 5.92 | — | — | — | — | |
| Eaton Corp. plc | 6.22 | — | — | — | — | |
| GE Aerospace | 5.22 | — | — | — | — | |
| Honeywell International Inc. | 4.90 | — | — | — | — | |
| Lockheed Martin Corp. | 25.59 | — | — | — | — | |
| RTX Corp. | 5.70 | — | — | — | — | |
| Receivables Turnover, Sector | ||||||
| Capital Goods | 7.40 | — | — | — | — | |
| Receivables Turnover, Industry | ||||||
| Industrials | 7.67 | — | — | — | — | |
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
Receivables turnover = Net sales ÷ Receivables, net
= 29,176 ÷ 1,364 = 21.39
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Raytheon Co. receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Payables Turnover
Raytheon Co., payables turnover 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) | ||||||
| Cost of sales, products and services | 21,413) | 19,573) | 19,076) | 17,947) | 17,574) | |
| Accounts payable | 1,796) | 1,964) | 1,519) | 1,520) | 1,402) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 11.92 | 9.97 | 12.56 | 11.81 | 12.53 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Boeing Co. | 4.63 | — | — | — | — | |
| Caterpillar Inc. | 6.15 | — | — | — | — | |
| Eaton Corp. plc | 6.78 | — | — | — | — | |
| GE Aerospace | 4.20 | — | — | — | — | |
| Honeywell International Inc. | 4.25 | — | — | — | — | |
| Lockheed Martin Corp. | 40.16 | — | — | — | — | |
| RTX Corp. | 5.28 | — | — | — | — | |
| Payables Turnover, Sector | ||||||
| Capital Goods | 5.63 | — | — | — | — | |
| Payables Turnover, Industry | ||||||
| Industrials | 7.40 | — | — | — | — | |
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
Payables turnover = Cost of sales, products and services ÷ Accounts payable
= 21,413 ÷ 1,796 = 11.92
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Raytheon Co. payables turnover ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level. |
Working Capital Turnover
Raytheon Co., working capital turnover 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) | ||||||
| Current assets | 13,082) | 12,136) | 11,326) | 10,678) | 9,812) | |
| Less: Current liabilities | 9,791) | 8,288) | 7,348) | 6,427) | 6,126) | |
| Working capital | 3,291) | 3,848) | 3,978) | 4,251) | 3,686) | |
| Net sales | 29,176) | 27,058) | 25,348) | 24,069) | 23,247) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 8.87 | 7.03 | 6.37 | 5.66 | 6.31 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Boeing Co. | 15.57 | — | — | — | — | |
| Caterpillar Inc. | 4.04 | — | — | — | — | |
| Eaton Corp. plc | 5.95 | — | — | — | — | |
| GE Aerospace | 7.03 | — | — | — | — | |
| Honeywell International Inc. | 5.92 | — | — | — | — | |
| Lockheed Martin Corp. | 19.15 | — | — | — | — | |
| RTX Corp. | 26.47 | — | — | — | — | |
| Working Capital Turnover, Sector | ||||||
| Capital Goods | 8.95 | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Industrials | 10.00 | — | — | — | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 29,176 ÷ 3,291 = 8.87
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Raytheon Co. working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Average Inventory Processing Period
Raytheon Co., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 31.91 | 25.82 | 32.11 | 27.23 | 27.68 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 11 | 14 | 11 | 13 | 13 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Boeing Co. | 388 | — | — | — | — | |
| Caterpillar Inc. | 112 | — | — | — | — | |
| Eaton Corp. plc | 71 | — | — | — | — | |
| GE Aerospace | 77 | — | — | — | — | |
| Honeywell International Inc. | 66 | — | — | — | — | |
| Lockheed Martin Corp. | 26 | — | — | — | — | |
| RTX Corp. | 70 | — | — | — | — | |
| Average Inventory Processing Period, Sector | ||||||
| Capital Goods | 140 | — | — | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Industrials | 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 31.91 = 11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Raytheon Co., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 21.39 | 16.42 | 19.15 | 19.76 | 19.89 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 17 | 22 | 19 | 18 | 18 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Boeing Co. | 16 | — | — | — | — | |
| Caterpillar Inc. | 62 | — | — | — | — | |
| Eaton Corp. plc | 59 | — | — | — | — | |
| GE Aerospace | 70 | — | — | — | — | |
| Honeywell International Inc. | 75 | — | — | — | — | |
| Lockheed Martin Corp. | 14 | — | — | — | — | |
| RTX Corp. | 64 | — | — | — | — | |
| Average Receivable Collection Period, Sector | ||||||
| Capital Goods | 49 | — | — | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Industrials | 48 | — | — | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 21.39 = 17
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Raytheon Co. number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Operating Cycle
Raytheon Co., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 11 | 14 | 11 | 13 | 13 | |
| Average receivable collection period | 17 | 22 | 19 | 18 | 18 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 28 | 36 | 30 | 31 | 31 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Boeing Co. | 404 | — | — | — | — | |
| Caterpillar Inc. | 174 | — | — | — | — | |
| Eaton Corp. plc | 130 | — | — | — | — | |
| GE Aerospace | 147 | — | — | — | — | |
| Honeywell International Inc. | 141 | — | — | — | — | |
| Lockheed Martin Corp. | 40 | — | — | — | — | |
| RTX Corp. | 134 | — | — | — | — | |
| Operating Cycle, Sector | ||||||
| Capital Goods | 189 | — | — | — | — | |
| Operating Cycle, Industry | ||||||
| Industrials | 141 | — | — | — | — | |
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 cycle = Average inventory processing period + Average receivable collection period
= 11 + 17 = 28
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Raytheon Co. operating cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level. |
Average Payables Payment Period
Raytheon Co., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 11.92 | 9.97 | 12.56 | 11.81 | 12.53 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 31 | 37 | 29 | 31 | 29 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Boeing Co. | 79 | — | — | — | — | |
| Caterpillar Inc. | 59 | — | — | — | — | |
| Eaton Corp. plc | 54 | — | — | — | — | |
| GE Aerospace | 87 | — | — | — | — | |
| Honeywell International Inc. | 86 | — | — | — | — | |
| Lockheed Martin Corp. | 9 | — | — | — | — | |
| RTX Corp. | 69 | — | — | — | — | |
| Average Payables Payment Period, Sector | ||||||
| Capital Goods | 65 | — | — | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Industrials | 49 | — | — | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.92 = 31
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Raytheon Co. number of days of payables outstanding increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level. |
Cash Conversion Cycle
Raytheon Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 11 | 14 | 11 | 13 | 13 | |
| Average receivable collection period | 17 | 22 | 19 | 18 | 18 | |
| Average payables payment period | 31 | 37 | 29 | 31 | 29 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | -3 | -1 | 1 | 0 | 2 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Boeing Co. | 325 | — | — | — | — | |
| Caterpillar Inc. | 115 | — | — | — | — | |
| Eaton Corp. plc | 76 | — | — | — | — | |
| GE Aerospace | 60 | — | — | — | — | |
| Honeywell International Inc. | 55 | — | — | — | — | |
| Lockheed Martin Corp. | 31 | — | — | — | — | |
| RTX Corp. | 65 | — | — | — | — | |
| Cash Conversion Cycle, Sector | ||||||
| Capital Goods | 124 | — | — | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Industrials | 92 | — | — | — | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 11 + 17 – 31 = -3
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Raytheon Co. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019. |