Textron Inc (TXT)

Short-term

Turnover ratios

Inventory turnover:
- Textron Inc's inventory turnover has been fluctuating over the years, ranging from 0.25 to 0.32.
- In general, a low inventory turnover ratio indicates that the company may be holding onto excess inventory or facing challenges in selling its products quickly.

Receivables turnover:
- The receivables turnover data is not provided for any of the years, which makes it difficult to assess how efficiently Textron Inc is collecting its receivables.
- A higher receivables turnover ratio would indicate that the company is efficient in collecting payments from its customers.

Payables turnover:
- Similar to receivables turnover, data on payables turnover is also not available for any of the years.
- A higher payables turnover ratio would suggest that the company is able to pay its suppliers quickly, which could potentially indicate strong working capital management.

Working capital turnover:
- Textron Inc's working capital turnover has shown significant variability, with figures ranging from 4.88 to 23.50.
- A higher working capital turnover ratio generally indicates that the company is efficiently using its working capital to generate sales revenue.

In conclusion, while Textron Inc's inventory turnover and working capital turnover ratios provide some insights into its operational efficiency, the lack of data on receivables turnover and payables turnover limits a more comprehensive analysis of the company's overall liquidity and management of working capital.

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Average number of days

From the data provided, we can analyze the activity ratios of Textron Inc as follows:

1. Days of Inventory on Hand:
- The days of inventory on hand for Textron Inc have exhibited fluctuations over the years. It decreased from 1,215.40 days in 2020 to 1,137.30 days in 2021 but then increased to 1,298.35 days in 2022, before slightly decreasing to 1,237.96 days in 2023 and rising significantly to 1,474.12 days in 2024.
- A high number of days of inventory on hand could indicate that Textron Inc is experiencing challenges in managing its inventory efficiently, which may lead to increased holding costs and potential obsolescence.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the days of sales outstanding (DSO) for Textron Inc for any of the years from 2020 to 2024. DSO is a crucial metric that indicates the average number of days it takes a company to collect revenue after a sale. The absence of this data makes it difficult to assess Textron Inc's efficiency in collecting receivables.

3. Number of Days of Payables:
- Similar to DSO, there is no information provided on the number of days of payables for Textron Inc over the same period. This ratio helps in understanding how long a company takes to pay its suppliers.
- Without this data, it is challenging to gauge Textron Inc's payment practices and its ability to manage its relationships with suppliers effectively.

In summary, while the days of inventory on hand data suggests some challenges in inventory management for Textron Inc, the absence of DSO and payables information limits a comprehensive analysis of the company's overall activity ratios and operational efficiency.

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Long-term

The fixed asset turnover ratio for Textron Inc has shown a consistent upward trend over the years, indicating that the company has been able to generate more revenue relative to its investment in fixed assets. This suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable over the years, with a slight increase from 0.75 in 2020 to 0.81 in 2023 and 2024. This indicates that Textron Inc has been able to efficiently generate revenue from its total assets, including both fixed and current assets.

Overall, the improving trend in the fixed asset turnover ratio coupled with a stable total asset turnover ratio suggests that Textron Inc has been effectively managing its assets to generate sales and improve operational efficiency in the long term.