Raytheon Technologies
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40.87 %
Yet to be announced
Company Overview
Raytheon Technologies Corporation provides systems and services for the commercial, military, and government customers worldwide. The company operates through four segments: Collins Aerospace Systems, Pratt & Whitney, Ray theon Intelligence & Space, and Ray thelon Missiles & Defense. Collins Aerospace systems offers aerospace and defense products, and aftermarket service solutions for aircraft manufacturers and airlines. The Pratt and Whitney segment supplies aircraft engines for military and commercial customers.
Revenue Sources
Examining Raytheon Technologies' operations reveals that a significant portion of their revenue comes from military and defense contracts, including weapons systems and missiles. While military defense equipment itself is not inherently haram when used for legitimate defense purposes, the company's products are widely used in conflicts that have resulted in civilian casualties. However, this alone does not constitute a haram source of income under Islamic finance principles as these products can be used for legitimate defensive purposes.
Reliance on Interest
| Reporting Date | Total Revenue | Total Expense | Interest Income | Interest Expense | Interest Income Ratio | Interest Expense Ratio |
|---|---|---|---|---|---|---|
| Sept. 30, 2024 | $20.09b | $18.56b | - | $496.0m | 0.00% | 2.67% |
| June 30, 2024 | $19.72b | $19.67b | - | $475.0m | 0.00% | 2.42% |
| March 31, 2024 | $19.3b | $17.84b | - | $405.0m | 0.00% | 2.27% |
| Dec. 31, 2023 | $19.93b | $18.64b | - | $488.0m | 0.00% | 2.62% |
Analyzing the last four quarters' financial data shows that interest expenses represent roughly 2.5-2.7% of total expenses consistently across all quarters. This level of interest expense is slightly above the preferred threshold but remains within acceptable limits for a manufacturing company of this size and sector.
Operational Ethics
Raytheon Technologies maintains significant ongoing business relationships with the Israeli military, including active contracts and technology transfers. The company has multiple ongoing projects with the Israeli Defense Forces and maintains research and development operations in Israel.
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