Raytheon Technologies Corp (RTX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 59,798,000 | 72,632,000 | 73,068,000 | 72,163,000 | 41,774,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $59,798,000K)
= 0.00
The debt-to-capital ratio of RTX Corp has shown fluctuations over the past five years. In 2019, the company had a relatively high debt-to-capital ratio of 0.51, indicating that more than half of the company's capital structure was financed by debt. However, there has been a consistent downward trend in the ratio over the subsequent years.
By 2021, the ratio decreased to 0.30, which suggests a lower reliance on debt financing compared to the previous years. This trend continued into 2022 with a slight increase to 0.31, indicating a relatively stable debt-to-capital structure.
However, in 2023, there was a notable increase in the debt-to-capital ratio to 0.42, signifying a higher proportion of debt in the company's capital structure compared to the previous year. This increase could indicate a strategic decision to leverage more debt to fund growth opportunities or other financial needs.
Overall, the fluctuation in RTX Corp's debt-to-capital ratio over the years highlights the company's evolving financial strategy and the changing mix of debt and equity used to finance its operations and investments. Further analysis and comparison with industry benchmarks may provide additional insights into the company's capital structure and financial health.
Peer comparison
Dec 31, 2023