Raytheon Technologies Corp (RTX)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $59,798,000K
= 0.00
The debt-to-equity ratio of RTX Corp has shown some fluctuation over the past five years. In 2019, the ratio was relatively high at 1.04, indicating that the company had more debt than equity in its capital structure. However, in the subsequent years, the ratio decreased significantly, reaching 0.43 in 2021 and 2022, and then slightly increasing to 0.44 in 2020 and 2023.
A debt-to-equity ratio of 0.73 at the end of 2023 suggests that the company has a moderate level of debt compared to its equity. This indicates that RTX Corp is relying more on debt financing relative to equity but to a lesser extent than in 2019.
Overall, the downward trend from 2019 to 2022 followed by a slight increase in 2023 suggests that RTX Corp has been managing its debt levels effectively. However, the recent uptick in the ratio may signal a potential shift towards higher debt utilization, which could impact the company's financial risk profile and future borrowing capacity. It would be important for stakeholders to monitor this trend closely to ensure a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023