Textron Inc (TXT)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 13,683,000 | 13,427,000 | 13,162,000 | 12,892,000 | 12,869,000 | 12,555,000 | 12,467,000 | 12,504,000 | 12,382,000 | 12,727,000 | 12,472,000 | 11,753,000 | 11,651,000 | 12,019,000 | 12,543,000 | 13,298,000 | 13,630,000 | 13,345,000 | 13,286,000 | 13,785,000 |
| Total current assets | US$ in thousands | 3,974,000 | 4,252,000 | 4,163,000 | 7,530,000 | 5,513,000 | 8,046,000 | 7,989,000 | 8,222,000 | 3,663,000 | 8,111,000 | 8,200,000 | 8,237,000 | 7,396,000 | 8,467,000 | 8,065,000 | 8,502,000 | 7,065,000 | 7,241,000 | 6,914,000 | 6,587,000 |
| Total current liabilities | US$ in thousands | 4,378,000 | 4,387,000 | 4,404,000 | 4,289,000 | 3,670,000 | 3,627,000 | 3,474,000 | 3,337,000 | 3,136,000 | 3,052,000 | 3,007,000 | 3,123,000 | 3,270,000 | 3,991,000 | 4,072,000 | 4,515,000 | 48,000 | 56,000 | 59,000 | 3,432,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $13,683,000K ÷ ($3,974,000K – $4,378,000K)
= —
The working capital turnover ratio for Textron Inc has shown variability over the past few quarters, ranging from as low as 1.86 to as high as 23.50. This ratio measures how efficiently the company is utilizing its working capital to generate revenue.
In the most recent quarter, the ratio was 3.98, indicating that Textron Inc generated approximately $3.98 in revenue for every dollar of working capital invested. This suggests a moderate level of efficiency in utilizing its current assets and liabilities to support operations.
The significant increase in the ratio to 23.50 in the fourth quarter of 2021 could imply either a substantial increase in revenue generation relative to working capital, a reduction in working capital requirements, or a combination of both. This may indicate improved operational efficiency or a more effective management of the company's working capital.
On the other hand, the lower ratios in some quarters, such as 1.86 and 1.94, suggest that Textron Inc may not have been utilizing its working capital as effectively during those periods, potentially due to inefficient use of current assets and/or higher levels of current liabilities relative to revenue generation.
Overall, it would be important for Textron Inc to closely monitor and manage its working capital turnover to ensure efficient utilization of resources and sustained profitability in the long term.
Peer comparison
Dec 31, 2023