Raytheon Technologies (XSWX:UTX) ROCE % : 8.00% (As of Mar. 2024)

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What is Raytheon Technologies ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Raytheon Technologies's annualized ROCE % for the quarter that ended in Mar. 2024 was 8.00%.

Raytheon Technologies ROCE % Historical Data

The historical data trend for Raytheon Technologies's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Raytheon Technologies ROCE % Chart

Raytheon Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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5.96

-0.82

5.20

6.07

4.50

Raytheon Technologies Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															7.12	6.34	-3.13	7.71	8.00

Raytheon Technologies ROCE % Calculation

Raytheon Technologies's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	4746.887	/	( ( (147997.702 - 36438.602)	+	(139984.311 - 40438.913) )	/ 2 )
	=	4746.887	/	( (111559.1	+	99545.398)	/ 2 )
	=	4746.887	/	105552.249
	=	4.50 %

Raytheon Technologies's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	8072.044	/	( ( (139984.311 - 40438.913)	+	(142342.168 - 40003.883) )	/ 2 )
	=	8072.044	/	( ( 99545.398	+	102338.285 )	/ 2 )
	=	8072.044	/	100941.8415
	=	8.00 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Raytheon Technologies (XSWX:UTX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Raytheon Technologies ROCE % Related Terms

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Raytheon Technologies (XSWX:UTX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Raytheon Technologies Corp (XSWX:UTX) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

RTX:USA RTX:Mexico 5URd:UK 0R2N:UK 5UR:Germany RTX:Canada RYTT34:Brazil RTX:Austria

Address

1000 Wilson Boulevard, Arlington, VA, USA, 22209

Website

https://www.rtx.com

RTX is a diversified aerospace and defense industrial company formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to commercial aerospace manufacturers and to the defense market. The company operates in three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, an aircraft engine manufacturer; and Raytheon, a defense prime contractor providing a mix of missiles, missile defense systems, sensors, hardware, and communications technology to the military.

Raytheon Technologies (XSWX:UTX) Headlines

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