Raytheon Technologies Corp (RTX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.19 | 2.21 | 2.25 | 3.34 |
Based on the solvency ratios of RTX Corp over the past five years, we can observe the following trends:
1. Debt-to-assets ratio: The company's debt-to-assets ratio has increased slightly from 0.20 in 2020 to 0.27 in 2023. This indicates that RTX Corp is using more debt to finance its assets compared to previous years.
2. Debt-to-capital ratio: RTX Corp's debt-to-capital ratio has also shown an increasing trend, rising from 0.30 in 2021 to 0.42 in 2023. This suggests that a larger portion of the company's capital structure is now made up of debt.
3. Debt-to-equity ratio: The debt-to-equity ratio of RTX Corp has fluctuated over the years but has generally been on an upward trend. It has increased from 0.43 in 2021 to 0.73 in 2023, indicating that the company is relying more on debt financing relative to equity.
4. Financial leverage ratio: The financial leverage ratio, which measures the company's total assets relative to its equity, has also shown a rising trend over the years. The ratio has increased from 2.25 in 2020 to 2.71 in 2023, indicating that RTX Corp is increasingly using debt to fund its operations and investments.
Overall, RTX Corp's solvency ratios suggest that the company's reliance on debt as a source of funding has been growing over the past few years. Investors and stakeholders may want to monitor these ratios closely to assess the company's ability to meet its debt obligations and manage its financial risks effectively.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.43 | 5.62 | 4.52 | -1.16 | 4.74 |
The interest coverage ratio for RTX Corp has exhibited fluctuations over the past five years. In 2023, the interest coverage ratio was 2.31, indicating that the company earned 2.31 times more operating income than the interest expenses it incurred during the year. This represents a decrease from the previous year's ratio of 4.15.
Looking back, in 2022 and 2021, RTX Corp had interest coverage ratios of 4.15 and 3.43, respectively, suggesting a relatively strong ability to meet its interest obligations with its operating earnings. However, in 2020, the interest coverage ratio was notably low at 0.30, indicating a potential challenge in covering interest expenses with operating income during that period.
Furthermore, in 2019, the interest coverage ratio stood at a healthier 5.24, indicating a strong ability to cover interest payments with operating income. Overall, the trend in RTX Corp's interest coverage ratios shows variability in its ability to meet interest obligations over the years, with fluctuations observed in the company's financial performance.