Raytheon Company disclosed the following data related to segment sales and operating profits for fiscal 2018.

$ millions

                                                                                 Total Net Sales       Operating Income

                                                                          2018 2017 2016                2018 2017 2016

Integrated defense systems . . . . . . . . . . . $ 6,180 $ 5,804 $ 5,529           $1,023 $ 935 $971

Intelligence, information and services . . . 6,722 6,177 6,169                      538 455 467

Missile systems . . . . . . . . . . . . . . . . . . . . 8,298 7,787 7,096                     973 1,010 921

Space and airborne systems . . . . . . . . . . 6,748 6,430 6,182                     884 862 808

Forcepoint. . . . . . . . . . . . . . . . . . . . . . . . . 634 608 586                                 5 33 90

Eliminations . . . . . . . . . . . . . . . . . . . . . . . (1,514)(1423)(1361)

(1,423) (1,361)

Total net sales . . . . . . . . . . . . . . . . . . . . . $27,068 $25,383 $24,201

 

The company also reported the following on its balance sheet.

$ millions 2018 2017

Receivables, net of allowance for doubtful accounts of $12 and $8. . . . . . . . . . . $1,648 $1,324

Required

a. Which segment is largest in 2018? Has this ranking changed over the three‑year period?

b. Calculate the operating profit margin for each segment and determine which segment is most profit‑ able in 2018 by this measure.

c. Which segment’s sales grew the most in 2018? How does this compare to 2017 sales growth?

d. Calculate the company’s accounts receivable turnover and its days sales outstanding (DSO) for 2018. Does this seem reasonable? What might explain the DSO?

e. Assess the size of the receivables allowance. Does it seem reasonable?