Textron Inc (TXT)
Activity ratios
Short-term
Turnover ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.88 | 0.79 | 0.80 | 0.83 | 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 | 2.67 | 2.68 | 2.90 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | 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 | 1.86 | 1.94 | 4.37 |
The inventory turnover ratio for Textron Inc has shown fluctuating trends over the periods presented. It increased significantly from negative values in the first half of 2021 to peak at 3.07 in Q1 2019, indicating improved efficiency in managing inventory levels. However, it decreased from 2019 to reach 0.88 in Q4 2023, suggesting a potential issue with excessive inventory on hand or slower inventory turnover in recent periods.
The receivables turnover ratio and payables turnover ratio data are missing, making it challenging to assess Textron's efficiency in managing receivables and payables.
The working capital turnover ratio reflects Textron's ability to generate revenue relative to its working capital. The ratio shows variability but generally improved from 2019 to 2021, indicating better utilization of working capital to generate sales. However, it dropped significantly in more recent periods, suggesting potential challenges in efficiently utilizing working capital to drive revenue growth.
Overall, Textron Inc's activity ratios display mixed performance, with improvements in inventory turnover and working capital turnover over the past years but more recent declines in efficiency metrics. Further analysis and context would be necessary to understand the underlying reasons for these fluctuations and their potential impact on the company's operational performance.
Average number of days
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 415.41 | 460.71 | 455.06 | 437.24 | 1,298.35 | 1,383.52 | 1,307.22 | 1,215.45 | 1,137.30 | — | — | — | — | 171.17 | 164.23 | 129.89 | 118.73 | 136.76 | 136.21 | 126.04 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the data provided for Textron Inc, the activity ratios analysis reveals the following:
1. Days of Inventory on Hand (DOH): The trend in DOH shows a significant improvement from the extremely high levels seen in late 2022 and early 2023. The company managed to reduce the number of days of inventory on hand throughout the year. However, there was a slight increase in inventory holding days from September 2023 to December 2023, suggesting a potential slowdown in inventory turnover efficiency.
2. Days of Sales Outstanding (DSO): Unfortunately, data for Days of Sales Outstanding is not available for analysis, making it difficult to assess the efficiency of the company in collecting its accounts receivable.
3. Number of Days of Payables: Similarly, information on the Number of Days of Payables is not provided, which prevents an evaluation of how long the company takes to pay its suppliers.
In conclusion, while Textron Inc seems to have improved its inventory management efficiency over the year as indicated by the decreasing trend in Days of Inventory on Hand, the lack of data on Days of Sales Outstanding and Number of Days of Payables limits the overall assessment of the company's activity ratios. It would be beneficial to have complete information on all activity ratios to gain a comprehensive understanding of Textron Inc's operational performance.
Long-term
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 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 | 5.34 | 5.28 | — |
| Total asset turnover | 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 | 0.89 | 0.90 | 0.95 |
The fixed asset turnover ratio for Textron Inc has been relatively stable and indicates the company's ability to generate revenue from its fixed assets. The ratio ranged from 4.38 to 5.52 over the period analyzed, with a peak in December 2023. This suggests that the company efficiently utilizes its fixed assets to generate sales.
In contrast, the total asset turnover ratio fluctuated more significantly over the same period, ranging from 0.75 to 0.91. This ratio measures Textron's ability to generate sales from its total assets, including current and fixed assets. The lower values in some quarters may indicate that the company could be more efficient in utilizing its total assets to generate revenue.
Overall, while the fixed asset turnover ratio reflects a consistent efficiency in utilizing fixed assets, the total asset turnover ratio shows some variability, indicating potential room for improvement in utilizing total assets effectively to drive sales.