Textron Inc (TXT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 60,000 | 45,000 | 55,000 | 80,000 | 1,963,000 | 67,000 | 1,764,000 | 1,978,000 | 1,922,000 | 1,969,000 | 193,000 | 1,897,000 | 2,146,000 | 152,000 | 170,000 | 183,000 | 1,181,000 | 931,000 | 82,000 | 646,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.02 | 0.53 | 0.02 | 0.51 | 0.59 | 0.61 | 0.65 | 0.06 | 0.61 | 0.66 | 0.04 | 0.04 | 0.04 | 24.60 | 16.62 | 1.39 | 0.19 |
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 shown fluctuations over the past five years, ranging from as low as 0.01 to as high as 24.60. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A cash ratio of 0.01 to 0.06 indicates that the company holds a relatively low amount of cash compared to its current liabilities, suggesting potential liquidity challenges in meeting short-term obligations.
However, the cash ratio notably spiked to 24.60 in December 2019, indicating a significant excess of cash compared to short-term obligations at that point in time. This could be a result of a specific event such as a large cash infusion or a significant decrease in short-term liabilities.
It is essential for investors and stakeholders to monitor the cash ratio consistently to assess Textron Inc's liquidity position and financial health. Fluctuations in the cash ratio can provide insights into the company's ability to manage its short-term financial commitments effectively.
Peer comparison
Dec 31, 2023