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Raytheon Technologies Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Raytheon Technologies has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Raytheon Technologies's Piotroski F-Score or its related term are showing as below:

NYSE:RTX' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 6

1
9

During the past 13 years, the highest Piotroski F-Score of Raytheon Technologies was 9. The lowest was 1. And the median was 6.


Raytheon Technologies Piotroski F-Score Historical Data

The historical data trend for Raytheon Technologies's Piotroski F-Score 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.

* Premium members only.

Raytheon Technologies Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 6.00 4.00 7.00 4.00

Raytheon Technologies Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 4.00 4.00 6.00

Competitive Comparison

For the Aerospace & Defense subindustry, Raytheon Technologies's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Raytheon Technologies Piotroski F-Score Distribution

For the Aerospace & Defense industry and Industrials sector, Raytheon Technologies's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Raytheon Technologies's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was 264 + 135 + 753 + 1032 = $2,184 Mil.
Cash Flow from Operations was 1590 + 1335 + 718 + 1307 = $4,950 Mil.
Revenue was 14747 + 16419 + 15251 + 15880 = $62,297 Mil.
Gross Profit was 1743 + 2153 + 2714 + 3225 = $9,835 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(161517 + 162399 + 162153 + 160608 + 158838) / 5 = $161103 Mil.
Total Assets at the begining of this year (Jun20) was $161,517 Mil.
Long-Term Debt & Capital Lease Obligation was $31,479 Mil.
Total Current Assets was $40,879 Mil.
Total Current Liabilities was $34,794 Mil.
Net Income was 1148 + 1143 + -83 + -3835 = $-1,627 Mil.

Revenue was 11373 + 11694 + 11360 + 14061 = $48,488 Mil.
Gross Profit was 2864 + 2578 + 2788 + 1847 = $10,077 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(138990 + 139009 + 139615 + 139572 + 161517) / 5 = $143740.6 Mil.
Total Assets at the begining of last year (Jun19) was $138,990 Mil.
Long-Term Debt & Capital Lease Obligation was $32,933 Mil.
Total Current Assets was $42,274 Mil.
Total Current Liabilities was $35,291 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Raytheon Technologies's current Net Income (TTM) was 2,184. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Raytheon Technologies's current Cash Flow from Operations (TTM) was 4,950. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun20)
=2184/161517
=0.0135218

ROA (Last Year)=Net Income/Total Assets (Jun19)
=-1627/138990
=-0.01170588

Raytheon Technologies's return on assets of this year was 0.0135218. Raytheon Technologies's return on assets of last year was -0.01170588. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Raytheon Technologies's current Net Income (TTM) was 2,184. Raytheon Technologies's current Cash Flow from Operations (TTM) was 4,950. ==> 4,950 > 2,184 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=31479/161103
=0.19539673

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=32933/143740.6
=0.22911411

Raytheon Technologies's gearing of this year was 0.19539673. Raytheon Technologies's gearing of last year was 0.22911411. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun21)=Total Current Assets/Total Current Liabilities
=40879/34794
=1.17488647

Current Ratio (Last Year: Jun20)=Total Current Assets/Total Current Liabilities
=42274/35291
=1.19786915

Raytheon Technologies's current ratio of this year was 1.17488647. Raytheon Technologies's current ratio of last year was 1.19786915. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Raytheon Technologies's number of shares in issue this year was 1513.5. Raytheon Technologies's number of shares in issue last year was 1501.3. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=9835/62297
=0.15787277

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=10077/48488
=0.20782462

Raytheon Technologies's gross margin of this year was 0.15787277. Raytheon Technologies's gross margin of last year was 0.20782462. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun20)
=62297/161517
=0.38569934

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=48488/138990
=0.34885963

Raytheon Technologies's asset turnover of this year was 0.38569934. Raytheon Technologies's asset turnover of last year was 0.34885963. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+0+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Raytheon Technologies has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Raytheon Technologies  (NYSE:RTX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Raytheon Technologies Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Raytheon Technologies's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Raytheon Technologies Business Description

Raytheon Technologies logo
Industry
Industrials » Aerospace & Defense NAICS : 336413 SIC : 3728
Address
870 Winter Street, Waltham, MA, USA, 02451
Raytheon Technologies 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 the commercial aerospace manufactures and to the defense market as a prime and subprime contractor. The company operates in four segments: Pratt & Whitney, an engine manufacturer, Collins Aerospace, which is a diversified aerospace supplier, and intelligence, space and airborne systems, a mix between a sensors business and a government IT contractor, and integrated defense and missile systems, a defense prime contractor focusing on missiles and missile defense hardware.
Executives
Ortberg Robert Kelly director, officer: Special Advisor to Off of CEO 870 WINTER STREET WALTHAM MA 02451
Timm Stephen J. officer: President, Collins Aerospace 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Dumais Michael R officer: EVP, Operations & Strategy UNITED TECHNOLOGIES CORPORATION 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Hayes Gregory director, officer: President and CEO 10 FARM SPRINGS ROAD FARMINGTON CT 06032
Azevedo Roy officer: President, RIS 870 WINTER STREET WALTHAM MA 02451
Kremer Wesley D officer: President, RMD 870 WINTER STREET WALTHAM MA 02451
Kennedy Thomas A director, officer: Executive Chairman 870 WINTER STREET WALTHAM MA 02451
Winnefeld James A Jr director 870 WINTER STREET WALTHAM MA 02451
Williams Dantaya M officer: Chief Human Resources Officer 870 WINTER STREET WALTHAM MA 02451
Larsen Marshall O director 870 WINTER STREET WALTHAM MA 02451
Ramos Denise L director 870 WINTER STREET WALTHAM MA 02451
Paliwal Dinesh C director 5454 W 110TH STREET OVERLAND PARK KS 66211
Oliver George director 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209
Austin Lloyd J. Iii director 870 WINTER STREET WALTHAM MA 02451
Atkinson Tracy A director MFS INVESTMENT MANAGEMENT 500 BOYLSTON ST. BOSTON MA 02116

Raytheon Technologies Headlines

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