Textron Inc (TXT)
Total 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 |
| Total assets | US$ in thousands | 16,856,000 | 16,293,000 | 15,827,000 | 15,443,000 | 15,018,000 |
| Total asset turnover | 0.81 | 0.79 | 0.78 | 0.75 | 0.91 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $13,683,000K ÷ $16,856,000K
= 0.81
The total asset turnover ratio for Textron Inc has been relatively stable over the past five years, hovering between 0.75 and 0.91. This ratio measures the company's ability to generate sales revenue in relation to the total assets it owns. A higher ratio indicates that the company is more efficient in utilizing its assets to generate revenue.
Textron Inc's total asset turnover ratio of 0.81 in 2023 suggests that for every dollar of assets the company owns, it generated $0.81 in sales revenue. This indicates a moderate level of efficiency in asset utilization, which is important for maximizing profitability.
While the ratio has experienced slight fluctuations over the years, it is essential for Textron Inc to strive for improvements in asset turnover to enhance operational efficiency and profitability in the long term. Efficient management of assets is crucial for sustaining and growing the company's performance in the competitive market landscape.
Peer comparison
Dec 31, 2023