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Raytheon Technologies Financial Strength

: 5 (As of Jun. 2022)
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Raytheon Technologies has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Raytheon Technologies's Interest Coverage for the quarter that ended in Jun. 2022 was 3.96. Raytheon Technologies's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.51. As of today, Raytheon Technologies's Altman Z-Score is 1.98.


Competitive Comparison

For the Aerospace & Defense subindustry, Raytheon Technologies's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Aerospace & Defense industry and Industrials sector, Raytheon Technologies's Financial Strength distribution charts can be found below:

* The bar in red indicates where Raytheon Technologies's Financial Strength falls into.



Raytheon Technologies Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Raytheon Technologies's Interest Expense for the months ended in Jun. 2022 was $-342 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,353 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $32,867 Mil.

Raytheon Technologies's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1353/-342
=3.96

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Raytheon Technologies's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(139 + 32867) / 65256
=0.51

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Raytheon Technologies has a Z-score of 1.98, indicating it is in Grey Zones. This implies that Raytheon Technologies is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.98 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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.


Raytheon Technologies  (NYSE:RTX) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Raytheon Technologies has the Financial Strength Rank of 5.


Raytheon Technologies Financial Strength Related Terms

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


Raytheon Technologies Business Description

Raytheon Technologies logo
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
Eddy Shane G officer: President, P&W 870 WINTER STREET WALTHAM MA 02451
Maharajh Ramsaran officer: EVP and General Counsel 870 WINTER STREET WALTHAM MA 02451
Johnson Amy L officer: Corporate VP and Controller 870 WINTER STREET WALTHAM MA 02451
Harris Bernard A Jr director 3411 ERIN KNOLL CT HOUSTON TX 77059
Williams Dantaya M officer: Chief Human Resources Officer 870 WINTER STREET WALTHAM MA 02451
Pawlikowski Ellen M director 870 WINTER STREET WALTHAM MA 02451
Winnefeld James A Jr director 870 WINTER STREET WALTHAM MA 02451
Oliver George director 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209
Paliwal Dinesh C director 5454 W 110TH STREET OVERLAND PARK KS 66211
Kennedy Thomas A director, officer: Executive Chairman 870 WINTER STREET WALTHAM MA 02451
Kremer Wesley D officer: President, RMD 870 WINTER STREET WALTHAM MA 02451
Azevedo Roy officer: President, RIS 870 WINTER STREET WALTHAM MA 02451
Atkinson Tracy A director MFS INVESTMENT MANAGEMENT 500 BOYLSTON ST. BOSTON MA 02116
Work Robert O director 870 WINTER STREET WALTHAM MA 02451
Wood Michael J officer: Corporate VP and Controller 870 WINTER STREET WALTHAM MA 02451

Raytheon Technologies Headlines

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