the annual reports $(10-$K$)$ of Raytheon$/$ United Technolgies and Northrop Grumman for the year ended December $31,2019,$ using EDGAR $($Electronic Data Gathering, Analysis, and Retrieval system$).$ Locate the balance sheet and income statement of each company. Calculate the return on equity $($ROE$)$ for both companies. For Raytheon, use $$Net income attributable to common shareowners$$ and $$Total equity$$ to calculate the ratio. For Northrop Grumman, use $$Net earnings$$ and $$Total shareholders$$ equity$.$ Which company delivers a higher return to shareholders based on ROE?

Calculate the return on assets $($ROA$)$ for both companies. Which company delivers a higher return to shareholders based on ROA?

Explain how a company can have a slightly higher ROA than its competitor, but a much higher ROE.

Calculate the return on equity $($ROE$)$ for both companies. Which company delivers a higher return to shareholders based on ROE?

Note: Round your percentage answers to $1$ decimal place.

Return on Equity

Raytheon $\%$

Northrop Grumman: $\%$

delivers a higher return to shareholders based on ROE.