Textron Inc (TXT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.64% | 91.57% | 92.24% | 91.01% | 90.94% |
| Operating profit margin | -13.33% | -14.82% | -14.15% | -17.07% | -21.11% |
| Pretax margin | 6.87% | 7.94% | 7.89% | 7.04% | 2.42% |
| Net profit margin | 6.01% | 6.73% | 6.69% | 6.02% | 2.65% |
The gross profit margin of Textron Inc has shown a consistent upward trend over the past five years, starting at 90.94% in 2020 and reaching 92.64% in 2024. This indicates that the company has been able to effectively control its cost of goods sold and improve efficiency in its operations.
On the other hand, the operating profit margin has been negative for the company, albeit with a decreasing trend from -21.11% in 2020 to -13.33% in 2024. This suggests that while Textron Inc has been able to reduce its operating losses over the years, there still remains room for improvement in the management of operating expenses.
The pretax margin has shown an overall increasing trend from 2.42% in 2020 to 6.87% in 2024. This indicates that the company has been able to improve its profitability before accounting for taxes, which reflects positively on its operational efficiency and overall financial performance.
Lastly, the net profit margin has shown a fluctuating pattern over the years, starting at 2.65% in 2020, peaking at 6.73% in 2023, and settling at 6.01% in 2024. While there have been fluctuations, the overall trend indicates that Textron Inc has been able to maintain a healthy level of profitability relative to its revenues after accounting for all expenses and taxes.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -10.85% | -12.03% | -11.18% | -13.36% | -15.93% |
| Return on assets (ROA) | 4.89% | 5.46% | 5.28% | 4.71% | 2.00% |
| Return on total capital | -25.36% | -29.03% | -25.60% | 14.88% | 7.66% |
| Return on equity (ROE) | 11.44% | 13.18% | 12.10% | 10.95% | 5.29% |
Textron Inc's profitability ratios exhibit certain trends over the years. The Operating Return on Assets (Operating ROA) has shown a gradual improvement, declining from -15.93% in 2020 to -10.85% in 2024. Despite this decrease, the company has been able to reduce its operational inefficiencies.
Return on Assets (ROA) has shown a fluctuating pattern, improving from 2.00% in 2020 to 5.46% in 2023, but slightly declining to 4.89% in 2024. This indicates that Textron Inc has been able to generate more profits from its assets in recent years.
The Return on Total Capital ratio has been volatile, ranging from 14.88% in 2021 to -29.03% in 2023, and stabilizing at -25.36% in 2024. This suggests that the company may have faced challenges in utilizing its total capital efficiently, resulting in a decreased return.
Return on Equity (ROE) has shown a general increasing trend, rising from 5.29% in 2020 to 13.18% in 2023, before slightly decreasing to 11.44% in 2024. This indicates that Textron Inc has been increasingly efficient in generating profits for its shareholders over the years.
Overall, while there are fluctuations in certain profitability ratios, Textron Inc has been able to manage its assets and equity effectively to improve its financial performance.