Textron Inc (TXT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -2,028,000 | -1,821,000 | -2,114,000 | -2,460,000 | -13,430,000 |
| Total assets | US$ in thousands | 16,856,000 | 16,293,000 | 15,827,000 | 15,443,000 | 15,018,000 |
| Operating ROA | -12.03% | -11.18% | -13.36% | -15.93% | -89.43% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-2,028,000K ÷ $16,856,000K
= -12.03%
Operating return on assets (ROA) is a key financial metric that evaluates a company's operating efficiency in generating profits relative to its total assets. Analyzing Textron Inc's operating ROA from 2019 to 2023 reveals a fluctuating trend.
For the year ending December 31, 2019, Textron Inc reported a significantly negative operating ROA of -89.43%, indicating that the company's operating profits were insufficient to cover its total assets leading to substantial losses. This suggests potential operational inefficiencies or challenges faced by the company during that period.
In the subsequent years, there was a slight improvement in Textron Inc's operating ROA performance. By December 31, 2020, the operating ROA improved to -15.93%, though it remained negative indicating that the company was still not effectively utilizing its assets to generate sustainable operating profits.
However, Textron Inc's operating ROA showed a further decline by December 31, 2021, dropping to -13.36%. This decline could signal potential operational difficulties or a decrease in the company's profitability generating capacity compared to the previous year.
By the end of December 31, 2022, Textron Inc's operating ROA saw a marginal improvement to -11.18%, suggesting that the company may have made some progress in enhancing its operating efficiency and profitability relative to its asset base.
In the most recent year, by December 31, 2023, Textron Inc's operating ROA was -12.03%, showing a slight deterioration from the previous year but remaining in the negative territory. This indicates that there is still room for improvement in the company's utilization of assets to enhance its operating profitability.
Overall, the analysis of Textron Inc's operating ROA indicates a fluctuating performance over the years, with some variations in the company's ability to generate operating profits relative to its asset base. This trend underscores the importance of closely monitoring and improving operational efficiency to enhance profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2023