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

Company name
Symbol
Financial leverage ratio
Raytheon Technologies Corp
RTX
2.71
Honeywell International Inc
HON
3.88

See also:

Raytheon Technologies Corp Financial Leverage (Quarterly Data)