Textron Inc (TXT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 60,000 | 45,000 | 55,000 | 80,000 | 1,963,000 | 67,000 | 1,764,000 | 1,978,000 | 1,922,000 | 1,969,000 | 193,000 | 1,897,000 | 2,146,000 | 152,000 | 170,000 | 183,000 | 1,181,000 | 931,000 | 82,000 | 646,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
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 been fluctuating over the periods mentioned. In the most recent period, as of December 31, 2023, the quick ratio was extremely low at 0.01, indicating a concerning level of liquidity. This may suggest that the company may have difficulties meeting its short-term obligations using its most liquid assets.
Looking at historical trends, the quick ratio has shown significant variability, with some periods exhibiting stronger liquidity positions (e.g., 0.61 in March 31, 2022) and others displaying weaker positions (e.g., 0.02 in September 30, 2022).
The sharp fluctuations in the quick ratio may warrant further investigation into Textron Inc's current asset composition, the level of current liabilities, and the effectiveness of its liquidity management. It is essential for stakeholders to monitor the quick ratio closely to assess the company's ability to cover its short-term liabilities without relying heavily on inventory.
Peer comparison
Dec 31, 2023