Textron Inc (TXT)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 14,067,000 | 13,797,000 | 13,794,000 | 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 |
| Total current assets | US$ in thousands | 4,126,000 | 4,468,000 | 4,345,000 | 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 |
| Total current liabilities | US$ in thousands | 943,000 | 4,359,000 | 4,395,000 | 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 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $14,067,000K ÷ ($4,126,000K – $943,000K)
= 4.42
The working capital turnover ratio for Textron Inc, a measure of how efficiently the company utilizes its working capital to generate sales, has fluctuated over the past few years.
From December 31, 2019, to September 30, 2021, the working capital turnover ratio ranged between 1.94 and 3.34, showing some variability in the company's ability to efficiently convert working capital into sales.
However, there was a significant spike in the working capital turnover ratio to 23.50 on December 31, 2021, suggesting either a substantial increase in sales relative to working capital or a decrease in working capital related to higher sales volume.
The ratio then reverted back to a more reasonable level, ranging from 2.30 to 6.98 in subsequent periods up to December 31, 2022, indicating a more stable utilization of working capital to generate sales.
Interestingly, as of September 30, 2024, the working capital turnover ratio surged to 126.58, which could potentially signal either a considerable increase in sales efficiency or anomalies in working capital management and financial reporting.
Overall, while the company's working capital turnover ratio has shown fluctuations over the years, it is essential for Textron Inc to monitor and manage its working capital efficiently to support sustainable growth and profitability in the long term.
Peer comparison
Dec 31, 2024