Textron Inc (TXT)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 60,000 | 1,963,000 | 1,922,000 | 2,146,000 | 1,181,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,378,000 | 3,670,000 | 3,136,000 | 3,270,000 | 48,000 |
| Quick ratio | 0.01 | 0.53 | 0.61 | 0.66 | 24.60 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($60,000K
+ $—K
+ $—K)
÷ $4,378,000K
= 0.01
The quick ratio of Textron Inc has exhibited significant fluctuations over the past five years, ranging from 0.01 to 24.60. In 2019, the quick ratio was exceptionally high at 24.60, indicating the company had a substantial amount of highly liquid assets relative to its current liabilities. However, this figure dropped considerably in subsequent years, particularly in 2020, where the quick ratio decreased to 0.66.
In the most recent year, as of December 31, 2023, the quick ratio plummeted to 0.01, suggesting a concerning situation where the company may have a minimal amount of liquid assets available to cover its immediate financial obligations. This sharp decline raises red flags about Textron Inc's liquidity position and ability to meet short-term liabilities.
Overall, the decreasing trend in the quick ratio indicates a potential deterioration in Textron Inc's liquidity over the years, highlighting the importance of closely monitoring the company's ability to efficiently manage its short-term financial obligations.
Peer comparison
Dec 31, 2023