Textron Inc (TXT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,126,000 | 3,974,000 | 5,513,000 | 3,663,000 | 5,659,000 |
| Total current liabilities | US$ in thousands | 4,394,000 | 4,378,000 | 3,670,000 | 3,136,000 | 3,270,000 |
| Current ratio | 0.94 | 0.91 | 1.50 | 1.17 | 1.73 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,126,000K ÷ $4,394,000K
= 0.94
The current ratio of Textron Inc has fluctuated over the past five years. As of December 31, 2020, the current ratio stood at 1.73, indicating the company had $1.73 in current assets to cover each dollar of current liabilities. However, by December 31, 2021, the current ratio decreased to 1.17, suggesting a potential liquidity strain as the coverage of current liabilities by current assets reduced.
Textron Inc saw an improvement in its current ratio by December 31, 2022, reaching 1.50. This indicates that the company's liquidity position improved compared to the previous year but still remains below the level observed in 2020.
By December 31, 2023, the current ratio dropped significantly to 0.91, raising concerns about the company's ability to meet its short-term obligations using its current assets. This decline continued into December 31, 2024, with the current ratio at 0.94, signaling a continued strain on liquidity levels.
Overall, the decreasing trend in the current ratio of Textron Inc over the five-year period suggests a potential deterioration in the company's liquidity position and warrants further exploration into the management of current assets and liabilities.
Peer comparison
Dec 31, 2024