Raytheon Co (Raytheon Co) Interest Coverage : 27.80 (As of Dec. 2019)

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What is Raytheon Co Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Raytheon Co's Operating Income for the three months ended in Dec. 2019 was $1,279 Mil. Raytheon Co's Interest Expense for the three months ended in Dec. 2019 was $-46 Mil. Raytheon Co's interest coverage for the quarter that ended in Dec. 2019 was 27.80. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Raytheon Co's Interest Coverage or its related term are showing as below:

RTN's Interest Coverage is not ranked ^*
in the Aerospace & Defense industry.
Industry Median: 7.205
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Raytheon Co Interest Coverage Historical Data

The historical data trend for Raytheon Co's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Raytheon Co Interest Coverage Chart

Raytheon Co Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Interest Coverage

Get a 7-Day Free Trial

13.16

16.79

20.64

24.66

26.52

Raytheon Co Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
Interest Coverage	Get a 7-Day Free Trial															26.39	25.30	26.13	26.80	27.80

Competitive Comparison of Raytheon Co's Interest Coverage

For the Aerospace & Defense subindustry, Raytheon Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Co's Interest Coverage Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Raytheon Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Raytheon Co's Interest Coverage falls into.

Raytheon Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Raytheon Co's Interest Coverage for the fiscal year that ended in Dec. 2019 is calculated as

Here, for the fiscal year that ended in Dec. 2019, Raytheon Co's Interest Expense was $-180 Mil. Its Operating Income was $4,774 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,967 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2019 )	/	Interest Expense (A: Dec. 2019 )
	=	-1	*	4774	/	-180
	=	26.52

Raytheon Co's Interest Coverage for the quarter that ended in Dec. 2019 is calculated as

Here, for the three months ended in Dec. 2019, Raytheon Co's Interest Expense was $-46 Mil. Its Operating Income was $1,279 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,967 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2019 )	/	Interest Expense (Q: Dec. 2019 )
	=	-1	*	1279	/	-46
	=	27.80

The higher the ratio, the stronger the company's Financial Strength is.

Raytheon Co (NYSE:RTN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Raytheon Co Interest Coverage Related Terms

Thank you for viewing the detailed overview of Raytheon Co's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Raytheon Co (Raytheon Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Raytheon Co (NYSE:RTN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

870 Winter Street, Waltham, MA, USA, 02451

Website

https://www.raytheon.com

Raytheon is a U.S. defense contractor that posted just over $27 billion in sales during 2018. It operates through five segments: integrated defense systems, intelligence and information, missile systems, space and airborne systems, and a cybersecurity business branded Forcepoint. Sales to the U.S. government account for about 70% of consolidated revenue. Based in Waltham, Massachusetts, Raytheon employs more than 60,000 people.

Executives

William Spivey	director
Letitia A Long	director	C/O CORPORATE OFFICE PROPERTIES TRUST, 6711 COLUMBIA GATEWAY DRIVE, #300, COLUMBIA MD 21046
David C Wajsgras	officer: Vice President	870 WINTER STREET, WALTHAM MA 02451
Marta R Stewart	director	C/O NORFOLK SOUTHERN CORP, THREE COMMERCIAL PL, NORFOLK VA 23510-9219
Frank R Jimenez	officer: VP, General Counsel, Secretary	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 606061
Michael J Wood	officer: VP, Controller & CAO	870 WINTER STREET, WALTHAM MA 02451
Ellen M Pawlikowski	director	870 WINTER STREET, WALTHAM MA 02451
Robert O Work	director	870 WINTER STREET, WALTHAM MA 02451
Tracy A Atkinson	director	MFS INVESTMENT MANAGEMENT, 500 BOYLSTON ST., BOSTON MA 02116
Roy Azevedo	officer: Vice President	870 WINTER STREET, WALTHAM MA 02451
Wesley D Kremer	officer: Vice President	870 WINTER STREET, WALTHAM MA 02451
Thomas A Kennedy	director, officer: Chairman and CEO	870 WINTER STREET, WALTHAM MA 02451
George Oliver	director	5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
Winnefeld James A Jr	director	870 WINTER STREET, WALTHAM MA 02451
Robert E Beauchamp	director	2101 CITYWEST BLVD, HOUSTON TX 77042-2827