Raytheon Technologies Corp (RTX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of RTX Corp reflect the company's ability to meet its long-term financial obligations and the extent to which it relies on debt financing.
The debt-to-assets ratio has been observed to increase steadily over the quarters, signaling that a higher proportion of the company's assets are funded by debt. This may have implications for the company's financial risk and leverage.
The debt-to-capital ratio, which indicates the proportion of the company's capital that is funded by debt, has also been on an upward trend. This suggests that RTX Corp is increasingly relying on debt to finance its operations and growth.
The debt-to-equity ratio, a measure of the company's financial leverage, has shown consistent growth over the quarters. This indicates that the company's reliance on debt relative to equity has been increasing steadily, which may raise concerns about its financial stability and capacity to absorb losses.
Lastly, the financial leverage ratio, which compares the company's total assets to its shareholders' equity, has demonstrated a pattern of fluctuations. While an increasing ratio may suggest greater financial risk, the variability in this ratio over time may warrant further investigation into the company's capital structure and financial health.
Overall, the solvency ratios of RTX Corp suggest a growing reliance on debt financing, which could impact the company's ability to manage its long-term financial obligations and withstand economic uncertainties. Monitoring these ratios on a regular basis will be crucial for assessing RTX Corp's solvency and financial risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations on its debt with its operating income. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.
Over the last eight quarters, RTX Corp's interest coverage ratio has fluctuated within a range of 2.24 to 4.51. In Q4 2023 and Q3 2023, the interest coverage ratios were 2.31 and 2.24, respectively, indicating a moderate ability to cover interest expenses. In Q2 2023 and Q1 2023, the interest coverage ratios improved significantly to 4.50 and 4.51, showing a stronger ability to meet interest payments.
Comparing to the previous year, there has been some variability in the interest coverage ratios, with fluctuations between 3.62 and 4.15. Although the ratios have generally been above 3.00, suggesting that RTX Corp has consistently had a sufficient operating income to cover its interest expenses.
Overall, RTX Corp's interest coverage ratios indicate that the company has been effectively managing its interest obligations, with some quarters showing stronger coverage than others. Monitoring this ratio can provide insights into the company's financial health and its ability to handle debt obligations.