Raytheon Technologies Corp (RTX)
Debt-to-capital ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 59,798,000 | 69,596,000 | 72,480,000 | 72,795,000 | 72,632,000 | 70,187,000 | 70,441,000 | 72,462,000 | 73,068,000 | 71,308,000 | 71,115,000 | 71,710,000 | 72,163,000 | 68,379,000 | 67,225,000 | 39,411,000 | 41,774,000 | 40,468,000 | 40,754,000 | 39,738,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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
RTX Corp's debt-to-capital ratio has shown a slight upward trend over the past few quarters, increasing from 0.30 in Q1 2022 to 0.42 in Q4 2023. This indicates that the company has been using a higher proportion of debt in its capital structure relative to equity.
While an increasing debt-to-capital ratio may imply higher financial risk due to greater reliance on debt financing, it can also signify potential benefits such as tax advantages from interest payments and the ability to leverage financial resources for growth opportunities.
It is important for RTX Corp to carefully manage its debt levels to ensure that it remains within comfortable limits and can meet its debt obligations. Monitoring the trend of the debt-to-capital ratio over time can provide valuable insights into the company's financial health and capital structure management.
Peer comparison
Dec 31, 2023