Raytheon Technologies Corp (RTX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 161,869,000 | 162,443,000 | 162,161,000 | 161,636,000 | 158,864,000 | 158,225,000 | 159,017,000 | 159,366,000 | 161,404,000 | 158,772,000 | 158,838,000 | 160,608,000 | 162,153,000 | 162,399,000 | 161,517,000 | 139,572,000 | 139,615,000 | 139,009,000 | 138,990,000 | 137,380,000 |
| 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 |
| Financial leverage ratio | 2.71 | 2.33 | 2.24 | 2.22 | 2.19 | 2.25 | 2.26 | 2.20 | 2.21 | 2.23 | 2.23 | 2.24 | 2.25 | 2.37 | 2.40 | 3.54 | 3.34 | 3.44 | 3.41 | 3.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $161,869,000K ÷ $59,798,000K
= 2.71
The financial leverage ratio of RTX Corp has exhibited fluctuations over the past eight quarters. The ratio has ranged from a low of 2.19 in Q4 2022 to a high of 2.71 in Q4 2023. Overall, the company's financial leverage has generally been on an upward trend since Q4 2022, indicating an increasing reliance on debt to finance its operations and investments.
A financial leverage ratio above 1.0 suggests that the company is primarily funded by debt rather than equity. RTX Corp's ratio has consistently been well above 1.0, indicating a significant level of financial leverage. This high level of debt relative to equity can amplify the company's financial risks and increase its vulnerability to economic downturns or interest rate fluctuations.
It is important for investors and stakeholders to closely monitor RTX Corp's financial leverage ratio and assess the company's ability to manage its debt obligations effectively. High financial leverage may enhance returns in good times but can also pose considerable challenges during periods of financial distress.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Financial Leverage (Quarterly Data)