Textron Inc (TXT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,827,000 | -2,028,000 | -1,821,000 | -2,114,000 | -2,460,000 |
| Revenue | US$ in thousands | 13,702,000 | 13,683,000 | 12,869,000 | 12,382,000 | 11,651,000 |
| Operating profit margin | -13.33% | -14.82% | -14.15% | -17.07% | -21.11% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-1,827,000K ÷ $13,702,000K
= -13.33%
Textron Inc's operating profit margin has shown a decreasing trend over the last five years. As of December 31, 2020, the operating profit margin was at -21.11%, indicating that the company's operating expenses were significantly higher than its operating income. However, there has been a gradual improvement in the operating profit margin since then, with a decrease to -17.07% by December 31, 2021, and further reductions to -14.15% by December 31, 2022, -14.82% by December 31, 2023, and finally to -13.33% by December 31, 2024.
Although the operating profit margin figures remain in negative territory, the consistent reduction in the margin percentage suggests that Textron Inc has been able to better control its operating expenses relative to its operating income over the years. It may be indicative of the company's efforts to streamline its operations and enhance efficiency, leading to a more favorable financial performance in terms of operating profitability.
Peer comparison
Dec 31, 2024