Textron Inc (TXT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 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 | 7,241,000 | 6,914,000 | 6,587,000 |
| 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 |
| Current ratio | 0.91 | 0.97 | 0.95 | 1.76 | 1.50 | 2.22 | 2.30 | 2.46 | 1.17 | 2.66 | 2.73 | 2.64 | 2.26 | 2.12 | 1.98 | 1.88 | 147.19 | 129.30 | 117.19 | 1.92 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,974,000K ÷ $4,378,000K
= 0.91
The current ratio of Textron Inc has shown significant fluctuations over the past several quarters. The ratio measures the company's ability to meet short-term financial obligations with its current assets.
Textron's current ratio has been volatile, ranging from as low as 0.91 to as high as 147.19. A current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities with its current assets, which was the case in some quarters such as December 31, 2023. On the other hand, a current ratio well above 1, like the exceptionally high ratios seen in December 31, 2019, and September 30, 2019, may suggest an excessive amount of current assets relative to current liabilities.
In general, a current ratio above 1 is considered healthy, as it implies the company has more current assets than current liabilities. However, it is crucial to evaluate the trend of the current ratio over time to assess the company's liquidity position accurately. The fluctuations in Textron's current ratio warrant further investigation into the company's working capital management and overall financial health.
Peer comparison
Dec 31, 2023