Textron Inc (TXT)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.42 | 126.58 | — | — | — | — | 3.98 | 6.98 | 2.84 | 2.76 | 2.56 | 23.50 | 2.52 | 2.40 | 2.30 | 2.82 | 2.69 | 3.14 | 3.34 | 1.94 |
The analysis of Textron Inc's activity ratios reveals varying trends over the years.
1. Inventory turnover: Textron's inventory turnover has fluctuated between positive and negative values, indicating some inconsistencies in managing inventory levels. The trend has shown improvement recently, with a slight increase in inventory turnover from 0.25 in March 2023 to 0.29 in December 2023 and maintaining around 0.26-0.29 from September 2024 to December 2024.
2. Receivables turnover: Data for receivables turnover is unavailable for all periods, making it challenging to assess how quickly Textron is collecting payments from customers.
3. Payables turnover: Similar to receivables turnover, payables turnover data is also unavailable, preventing an evaluation of Textron's payment practices to suppliers.
4. Working capital turnover: The working capital turnover ratio indicates how efficiently Textron utilizes its working capital to generate sales. Notably, there was a significant spike in the ratio from 2.82 in December 2020 to 23.50 in December 2021, which suggests a substantial increase in sales relative to the company's working capital. The ratio fluctuated between 2.30 to 3.98 from March 2021 to March 2023. There was an exceptional increase in the ratio to 126.58 in September 2024, indicating a significant surge in sales relative to working capital in that period.
Overall, while the inventory turnover and working capital turnover ratios show some fluctuations, the unavailability of data for receivables turnover and payables turnover limits a comprehensive assessment of Textron Inc's overall efficiency in managing its operational activities.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1,239.30 | 1,391.23 | 1,330.02 | 1,237.96 | 1,465.22 | 1,484.57 | 1,437.35 | 1,298.35 | 1,383.52 | 1,307.22 | 1,215.45 | 1,137.30 | — | — | — | — | 171.17 | 164.23 | 129.89 | 118.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Textron Inc, the analysis of activity ratios reveals the following:
1. Days of Inventory on Hand (DOH):
- The DOH for Textron Inc has been fluctuating over the years, starting at 118.73 days on December 31, 2019, and experiencing significant increases in later periods.
- Notably, the DOH spiked to exceptionally high levels, reaching 1,484.57 days on June 30, 2023, before gradually decreasing to 1,239.30 days by December 31, 2024.
- The extremely high DOH values suggest that Textron Inc may be facing challenges in managing its inventory efficiently, which could potentially lead to increased holding costs and liquidity issues.
2. Days of Sales Outstanding (DSO):
- The data provided does not contain any information on the Days of Sales Outstanding (DSO) for Textron Inc, indicating a lack of insights into the company's accounts receivable turnover and collection efficiency.
3. Number of Days of Payables:
- Similar to DSO, there is a lack of data on the Number of Days of Payables for Textron Inc, making it challenging to evaluate the company's payment terms with suppliers and its ability to manage its accounts payable effectively.
In summary, the analysis of activity ratios for Textron Inc highlights significant fluctuations in the Days of Inventory on Hand over the years, potentially indicating inventory management challenges. However, the absence of data on DSO and payables limits a comprehensive assessment of the company's overall liquidity and working capital management efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | 5.52 | — | — | 5.15 | 5.10 | 5.14 | 4.41 | 4.38 | 4.88 | 4.45 | 4.36 | — | 4.63 | 4.93 | — | 5.36 | 5.39 |
| Total asset turnover | 0.84 | 0.84 | 0.84 | 0.81 | 0.81 | 0.80 | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 | 0.78 | 0.83 | 0.81 | 0.76 | 0.75 | 0.76 | 0.81 | 0.83 | 0.91 |
The fixed asset turnover ratio measures how effectively a company is using its fixed assets to generate revenue. A higher ratio indicates better efficiency in utilizing fixed assets.
For Textron Inc:
- The fixed asset turnover ratio has been fluctuating over the years. It was 5.39 on December 31, 2019, and reached a peak of 5.52 on December 31, 2023.
- The company experienced a slight decrease in efficiency in utilizing fixed assets in the most recent periods, as the ratio declined to 4.41 on June 30, 2022, and further to 4.10 by March 31, 2024.
The total asset turnover ratio, on the other hand, evaluates how well a company is utilizing all its assets to generate sales. A higher ratio indicates that the company is generating more revenue per dollar of assets.
For Textron Inc:
- The total asset turnover ratio has been relatively stable, hovering around 0.79 to 0.84 from March 31, 2022, to December 31, 2024.
- Although there were fluctuations in some quarters, the company maintained a consistent level of efficiency in generating sales considering its total asset base.
In summary, Textron Inc has shown varying levels of efficiency in utilizing its fixed assets to generate revenue, while maintaining a relatively stable performance in using its total assets to generate sales over the analyzed periods.