Textron Inc (TXT)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 55,000 | 2,121,000 | 1,963,000 | 1,922,000 | 2,146,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 4,394,000 | 4,378,000 | 3,670,000 | 3,136,000 | 3,270,000 |
| Quick ratio | 0.01 | 0.48 | 0.53 | 0.61 | 0.66 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($55,000K
+ $—K
+ $—K)
÷ $4,394,000K
= 0.01
The quick ratio of Textron Inc has shown a decreasing trend over the five-year period from 2020 to 2024. Starting at 0.66 in December 31, 2020, the ratio declined to 0.61 by the end of 2021, further declining to 0.53 in 2022, 0.48 in 2023, and dramatically dropping to 0.01 by December 31, 2024.
A quick ratio below 1 indicates that the company may have difficulties in meeting its short-term obligations using its most liquid assets. The decreasing trend observed in the quick ratio may suggest that Textron Inc is facing challenges in maintaining sufficient liquid assets to cover its current liabilities in the short term. It is important for the company to closely monitor its liquidity position and take necessary steps to improve its ability to honor its short-term financial obligations.
Peer comparison
Dec 31, 2024