Textron Inc (TXT)
Inventory turnover
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,199,000 | 1,157,000 | 1,171,000 | 1,154,000 | 1,048,000 | 1,010,000 | 999,000 | 998,000 | 1,007,000 | 1,044,000 | 1,100,000 | 1,113,000 | -5,876,000 | -3,550,000 | -3,770,000 | -1,360,000 | 9,067,000 | 9,472,000 | 12,322,000 | 12,509,000 |
| Inventory | US$ in thousands | 4,071,000 | 4,410,000 | 4,267,000 | 3,914,000 | 4,207,000 | 4,108,000 | 3,934,000 | 3,550,000 | 3,817,000 | 3,739,000 | 3,663,000 | 3,468,000 | 3,670,000 | 3,664,000 | 3,705,000 | 3,513,000 | 4,252,000 | 4,262,000 | 4,385,000 | 4,069,000 |
| Inventory turnover | 0.29 | 0.26 | 0.27 | 0.29 | 0.25 | 0.25 | 0.25 | 0.28 | 0.26 | 0.28 | 0.30 | 0.32 | -1.60 | -0.97 | -1.02 | -0.39 | 2.13 | 2.22 | 2.81 | 3.07 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,199,000K ÷ $4,071,000K
= 0.29
The inventory turnover ratio of Textron Inc has exhibited fluctuations over the period from December 31, 2019, to December 31, 2024. The inventory turnover ratio indicates the number of times in a year that a company sells and replaces its inventory.
At the end of 2019, the inventory turnover ratio was 3.07, reflecting that Textron Inc turned over its inventory approximately three times during that year. Over the subsequent quarters, the ratio decreased gradually to 0.32 by the end of 2021. This significant decline may suggest issues with managing inventory efficiently during this period.
However, from March 31, 2022, the inventory turnover ratio started to stabilize and showed slight improvements, indicating the company's inventory management may have been more effective. By December 31, 2024, the ratio had increased to 0.29, reflecting a more favorable turnover rate compared to the low levels seen in 2021.
Overall, although there were fluctuations in the inventory turnover ratio during the period analyzed, it seems that Textron Inc made efforts to optimize its inventory management practices, resulting in improved turnover rates towards the end of the period. Keeping an eye on this ratio is crucial for assessing operational efficiency and overall financial health.
Peer comparison
Dec 31, 2024
Dec 31, 2024