Textron Inc (TXT)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 921,000 | 861,000 | 746,000 | 309,000 | 815,000 |
| Revenue | US$ in thousands | 13,683,000 | 12,869,000 | 12,382,000 | 11,651,000 | 13,630,000 |
| Net profit margin | 6.73% | 6.69% | 6.02% | 2.65% | 5.98% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $921,000K ÷ $13,683,000K
= 6.73%
The net profit margin of Textron Inc has shown fluctuations over the past five years. In 2023, the net profit margin increased slightly to 6.73% from 6.69% in 2022. This indicates that Textron Inc was able to maintain and slightly improve its profitability relative to its revenue in 2023.
Compared to previous years, the net profit margin in 2023 is higher than in 2021 and 2020, where it was 6.02% and 2.65% respectively. This suggests an improvement in the company's ability to convert revenue into profit in 2023 compared to these years.
However, the net profit margin in 2023 is lower than in 2019 when it stood at 5.98%. Despite the slight increase from 2022 to 2023, the firm's profitability remains below the level achieved in 2019. This indicates a potential trend of overall improvement but with fluctuations in profitability over the past five years.
In conclusion, Textron Inc has shown a varying net profit margin over the past five years, with a modest increase in 2023 compared to the previous year. The company has been able to maintain a relatively stable level of profitability in recent years, although there have been fluctuations. Management should continue to focus on improving operational efficiency and cost management to sustain and potentially increase profitability in the future.
Peer comparison
Dec 31, 2023