Textron Inc (TXT)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,000 | 1,963,000 | 1,922,000 | 2,146,000 | 1,181,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,378,000 | 3,670,000 | 3,136,000 | 3,270,000 | 48,000 |
| Cash ratio | 0.01 | 0.53 | 0.61 | 0.66 | 24.60 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($60,000K
+ $—K)
÷ $4,378,000K
= 0.01
The cash ratio of Textron Inc has exhibited a significant decline over the years, dropping from 24.60 in 2019 to 0.01 in 2023. This indicates a notable decrease in the company's ability to cover its short-term liabilities using its cash and cash equivalents. The cash ratio was relatively stable from 2020 to 2022, ranging between 0.61 and 0.66, suggesting that the company had a stronger liquidity position during those years compared to 2023. The sharp decline in the cash ratio in 2023 may signify potential liquidity challenges or inefficient management of cash resources during that period. It is essential for Textron Inc to closely monitor its liquidity position and improve its cash management practices to ensure its ability to meet short-term obligations in the future.
Peer comparison
Dec 31, 2023