Textron Inc (TXT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 16,838,000 | 16,856,000 | 16,293,000 | 15,827,000 | 15,443,000 |
| Operating ROA | -10.85% | -12.03% | -11.18% | -13.36% | -15.93% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,827,000K ÷ $16,838,000K
= -10.85%
Textron Inc's operating return on assets (operating ROA) has shown a decreasing trend over the past five years. Starting at -15.93% on December 31, 2020, it improved slightly to -13.36% by December 31, 2021. However, the trend reversed in the following two years, as the operating ROA declined to -11.18% by December 31, 2022, and then further decreased to -12.03% by December 31, 2023. The latest data point for December 31, 2024, shows a modest improvement, with the operating ROA reported at -10.85%.
The negative values indicate that the company's operating income generated from its assets has not been sufficient to cover the operational costs and expenses. This suggests challenges in effectively utilizing its assets to generate profits, which is crucial for sustainable growth and financial performance in the long term. Textron Inc may need to assess its operational efficiency and asset utilization strategies to improve its operating ROA and overall financial health.
Peer comparison
Dec 31, 2024