Textron Inc (TXT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 55,000 | 2,121,000 | 1,963,000 | 1,922,000 | 2,146,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,394,000 | 4,378,000 | 3,670,000 | 3,136,000 | 3,270,000 |
| Cash ratio | 0.01 | 0.48 | 0.53 | 0.61 | 0.66 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($55,000K
+ $—K)
÷ $4,394,000K
= 0.01
The cash ratio of Textron Inc has displayed a downward trend over the years, declining from 0.66 on December 31, 2020, to 0.01 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities solely with its available cash and cash equivalents has significantly weakened. The decreasing trend might raise concerns about Textron Inc's liquidity position and its ability to meet its immediate financial obligations effectively. It is essential for the company to closely monitor its cash management strategies and explore opportunities to improve its cash position to ensure financial stability and solvency in the future.
Peer comparison
Dec 31, 2024