Raytheon Technologies Corp (RTX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.71 | 2.71 | 2.19 | 2.21 | 2.25 |
Raytheon Technologies Corp's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the years 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all stand at 0.00, implying that the company has no debt obligations in relation to its assets, capital, or equity.
However, it is worth noting that the Financial Leverage ratio has shown some variability, increasing from 2.25 in 2020 to 2.71 in 2023 and remaining stable at this level in 2024. This suggests that the company's reliance on debt to finance its operations has increased slightly in the later years, albeit from a low base. Overall, Raytheon Technologies Corp's solvency ratios reflect a sound financial structure and a conservative approach to debt management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.20 | 3.43 | 5.62 | 4.52 | -1.16 |
The interest coverage ratio for Raytheon Technologies Corp has shown a fluctuating trend over the years. In December 31, 2020, the company's interest coverage ratio was negative at -1.16, indicating that the company's earnings were insufficient to cover its interest expenses during that period. However, there has been a significant improvement in the company's financial health in subsequent years.
By December 31, 2021, Raytheon Technologies Corp's interest coverage ratio had increased to 4.52, indicating that the company's earnings were able to cover its interest expenses approximately 4.52 times over. This improvement continued into the following years, with the interest coverage ratios for December 31, 2022, and December 31, 2024, standing at 5.62 and 4.20 respectively.
However, there was a slight decline in the interest coverage ratio for December 31, 2023, to 3.43, suggesting that the company's ability to cover its interest expenses had weakened compared to the previous year. Overall, despite the fluctuations, the company's interest coverage ratio has generally shown positive trends, indicating an improving ability to service its interest obligations.