Raytheon Technologies Corp (RTX)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.70 | 2.73 | 2.65 | 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 |
The solvency ratios of Raytheon Technologies Corp indicate a strong financial position with consistently low debt levels in relation to its assets, capital, and equity over the reporting periods provided. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00, suggesting that the company has no significant debt obligations relative to its total assets, capital, and equity.
The Financial leverage ratio decreased from 3.54 on March 31, 2020, to 2.71 on December 31, 2024, showing a downward trend over time. This indicates that the company has been effectively managing its debt levels in proportion to its equity, reducing the financial risk associated with high leverage.
Overall, Raytheon Technologies Corp has maintained a conservative approach to debt management, reflected in the consistently low solvency ratios. This signifies a stable financial position and a reduced likelihood of financial distress, enhancing investor confidence in the company's ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.20 | 4.06 | 2.44 | 3.30 | 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 |
Raytheon Technologies Corp's interest coverage ratio has shown fluctuations over the past few years, ranging from negative values to positive values. The interest coverage ratio measures the company's ability to meet its interest obligations from operating income.
The interest coverage ratio was at its lowest point in September 2020 and December 2020, indicating that the company's operating income was not sufficient to cover its interest expenses during those periods. This could be a cause for concern as it may indicate financial strain or a reduced ability to service debt obligations.
However, the interest coverage ratio improved significantly from March 2021 onwards, reaching positive values and showing a generally increasing trend. This suggests that Raytheon Technologies Corp's ability to cover interest payments with operating income has strengthened over time, which is a positive sign for investors and creditors.
Overall, the trend in Raytheon Technologies Corp's interest coverage ratio indicates an improvement in the company's ability to meet its interest obligations from operating income, although it experienced challenges in the past. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and sustainability.