Raytheon Technologies Corp (RTX)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 162,861,000 | 161,869,000 | 158,864,000 | 161,404,000 | 162,153,000 |
| Total stockholders’ equity | US$ in thousands | 60,156,000 | 59,798,000 | 72,632,000 | 73,068,000 | 72,163,000 |
| Financial leverage ratio | 2.71 | 2.71 | 2.19 | 2.21 | 2.25 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $162,861,000K ÷ $60,156,000K
= 2.71
The financial leverage ratio of Raytheon Technologies Corp has been relatively stable over the past few years, starting at 2.25 in 2020 and gradually decreasing to 2.19 by the end of 2022. However, there was a significant increase to 2.71 by the end of 2023, which remained constant in 2024. This indicates that the company's reliance on debt to finance its operations increased notably in 2023. It is essential for stakeholders to closely monitor the trend in the financial leverage ratio to assess the company's risk management and financial stability.
Peer comparison
Dec 31, 2024
Company name
Symbol
Financial leverage ratio
Raytheon Technologies Corp
RTX
2.71
Honeywell International Inc
HON
3.88