Textron Inc (TXT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick 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 |
| 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 |
The liquidity ratios of Textron Inc show varying levels of liquidity over the time period analyzed. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated between 0.91 and 2.73. A current ratio below 1 indicates potential liquidity issues as the company may not be able to meet its short-term obligations.
Meanwhile, the quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has shown significant volatility, ranging from 0.01 to 0.66. A quick ratio below 1 suggests that the company may struggle to meet its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity ratio as it only includes cash and cash equivalents in the numerator, has also displayed fluctuations between 0.01 and 0.66. A cash ratio below 1 implies that the company may have limited cash resources available to cover its short-term liabilities.
Overall, the liquidity ratios of Textron Inc indicate that there have been periods of potential liquidity challenges, particularly when considering the quick and cash ratios. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its financial obligations as they come due.
Additional liquidity measure
| 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 conversion cycle | days | 415.41 | 460.71 | 455.06 | 437.24 | 1,298.35 | 1,383.52 | 1,307.22 | 1,215.45 | 1,137.30 | 0.00 | 0.00 | 0.00 | 0.00 | 171.17 | 164.23 | 129.89 | 118.73 | 136.76 | 136.21 | 126.04 |
The cash conversion cycle for Textron Inc has shown fluctuations over the past few quarters. As of the latest reported period, the cash conversion cycle stood at 415.41 days, indicating the number of days it takes for the company to convert its investments in inventory and other resources into cash flows.
The trend in the cash conversion cycle has been somewhat erratic, with significant spikes recorded in the fourth quarter of 2022 and first quarter of 2023, where the company experienced extended periods to convert its investments into cash. This may suggest inefficiencies in managing inventory, collecting receivables, or managing payables during those periods.
In contrast, in the previous periods leading up to the fourth quarter of 2020, the cash conversion cycle was significantly lower, indicating that the company was able to convert its resources into cash more efficiently during those periods.
Overall, Textron Inc should closely monitor its cash conversion cycle and identify areas where improvements can be made to optimize working capital management and enhance overall cash flow efficiency.