Textron Inc (TXT)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 12,694,000 | 12,529,000 | 11,871,000 | 11,269,000 | 10,596,000 |
| Revenue | US$ in thousands | 13,702,000 | 13,683,000 | 12,869,000 | 12,382,000 | 11,651,000 |
| Gross profit margin | 92.64% | 91.57% | 92.24% | 91.01% | 90.94% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $12,694,000K ÷ $13,702,000K
= 92.64%
Based on the provided data, Textron Inc has shown a consistent increase in its gross profit margin over the five-year period from 2020 to 2024.
The company's gross profit margin increased from 90.94% in December 2020 to 92.64% in December 2024. This upward trend indicates that Textron Inc has been effectively managing its production costs and generating higher profits from its core business operations.
A rising gross profit margin is generally considered a positive indicator of a company's efficiency in controlling production costs and pricing its products effectively. Textron Inc's ability to consistently improve its gross profit margin over the years suggests a strong competitive position and an efficient operation of its business.
This trend in the gross profit margin signifies that Textron Inc has been able to maintain a healthy balance between cost management and revenue generation, which is essential for long-term sustainability and profitability in the competitive business environment.
Peer comparison
Dec 31, 2024