Raytheon Technologies Corp (RTX)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,086,000 | 4,732,000 | 7,716,000 | 7,636,000 | 7,113,000 | 6,349,000 | 6,123,000 | 6,046,000 | 5,972,000 | 5,220,000 | 4,232,000 | -1,022,000 | -1,578,000 | -368,000 | 722,000 | 6,518,000 | 7,804,000 | 6,747,000 | 6,806,000 | 7,525,000 |
| Interest expense (ttm) | US$ in thousands | 1,505,000 | 1,335,000 | 1,277,000 | 1,273,000 | 1,276,000 | 1,234,000 | 1,281,000 | 1,294,000 | 1,322,000 | 1,395,000 | 1,387,000 | 1,380,000 | 1,366,000 | 1,434,000 | 1,486,000 | 1,503,000 | 1,602,000 | 1,496,000 | 1,352,000 | 1,234,000 |
| Interest coverage | 3.38 | 3.54 | 6.04 | 6.00 | 5.57 | 5.15 | 4.78 | 4.67 | 4.52 | 3.74 | 3.05 | -0.74 | -1.16 | -0.26 | 0.49 | 4.34 | 4.87 | 4.51 | 5.03 | 6.10 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,086,000K ÷ $1,505,000K
= 3.38
The interest coverage ratio for RTX Corp has shown some fluctuations over the past eight quarters. The ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In Q4 2023 and Q3 2023, the interest coverage ratios were 2.31 and 2.24, respectively, suggesting that the company's EBIT was able to cover its interest expenses, but with a relatively lower margin compared to previous quarters.
On the other hand, in Q2 2023 and Q1 2023, the interest coverage ratios improved significantly to 4.50 and 4.51, respectively, indicating a stronger ability to meet interest obligations.
Comparing to the same quarters in the previous year, the interest coverage ratios in Q4 2022, Q3 2022, Q2 2022, and Q1 2022 were relatively stable around the 4.0 mark, showing consistent performance in covering interest expenses during that period.
Overall, the trend in RTX Corp's interest coverage ratios indicates some variability, with a mix of improved and slightly weakened ability to cover interest expenses with operating profits over the past eight quarters. Further analysis of the company's financial performance and factors affecting profitability would be necessary to understand the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023
See also:
Raytheon Technologies Corp Interest Coverage (Quarterly Data)