Textron Inc (TXT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,683,000 | 12,869,000 | 12,382,000 | 11,651,000 | 13,630,000 |
| Property, plant and equipment | US$ in thousands | 2,477,000 | 2,523,000 | 2,538,000 | 2,516,000 | 2,527,000 |
| Fixed asset turnover | 5.52 | 5.10 | 4.88 | 4.63 | 5.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,683,000K ÷ $2,477,000K
= 5.52
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. An increasing trend in the fixed asset turnover ratio over the years indicates that Textron Inc has been able to generate more sales revenue relative to its investment in fixed assets.
Textron Inc's fixed asset turnover has shown a generally positive trend from 2019 to 2023, indicating improved efficiency in utilizing its fixed assets. In 2023, the ratio stands at 5.52, which suggests that for every dollar invested in fixed assets, Textron Inc generated approximately $5.52 in sales revenue. This reflects a strong operational efficiency and effective asset utilization by the company.
Overall, the increasing trend in the fixed asset turnover ratio for Textron Inc over the years signifies improved efficiency and productivity in utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023