Textron Inc (TXT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 91.48% | 91.61% | 91.51% | 91.57% | 92.19% | 92.33% | 92.25% | 92.24% | 91.98% | 91.63% | 91.20% | 91.01% | 146.17% | 149.06% | 153.94% | 156.62% | 99.54% | 75.85% | 55.79% | 35.92% |
| Operating profit margin | -20.37% | -15.33% | -14.93% | -14.82% | -13.55% | -13.54% | -14.17% | -14.15% | -14.58% | -15.48% | -16.52% | -17.07% | 38.77% | 63.96% | 91.59% | 119.37% | 99.54% | 73.82% | 51.68% | 29.66% |
| Pretax margin | 6.04% | 7.39% | 7.95% | 7.94% | 8.30% | 8.18% | 7.83% | 7.89% | 8.00% | 7.69% | 7.31% | 7.04% | 6.60% | 5.92% | 3.43% | 2.42% | 2.30% | 3.20% | 6.01% | 6.91% |
| Net profit margin | 5.42% | 6.46% | 6.75% | 6.73% | 7.07% | 6.88% | 6.66% | 6.69% | 6.71% | 6.43% | 6.14% | 6.02% | 6.09% | 5.65% | 3.66% | 2.65% | 2.26% | 3.01% | 5.16% | 5.98% |
Textron Inc's profitability ratios have shown some fluctuations over the years.
1. Gross Profit Margin: The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, has ranged from a low of 35.92% in December 2019 to a high of 156.62% in December 2020. However, it gradually decreased to around 91% by the end of 2024, indicating a decline in the company's ability to control its direct production costs efficiently.
2. Operating Profit Margin: The operating profit margin, reflecting the proportion of revenue that remains after deducting operating expenses, has also seen significant variability. The margin was positive until September 2021, where it reached 38.77%, before turning negative. The negative trend continued until December 2024 when the margin was -20.37%. This suggests that the company's operating expenses surpassed its operating income during those periods.
3. Pretax Margin: The pretax margin, showing the percentage of revenue left after accounting for all operating expenses but before taxes, generally increased from around 2-3% in 2019 and 2020 to around 8% by the end of 2023. However, it declined slightly to 6.04% by December 2024.
4. Net Profit Margin: The net profit margin, which indicates the percentage of revenue that ultimately translates into net income, exhibited a similar trend to the pretax margin, increasing from approximately 3-6% in 2019 and 2020 to around 7% by September 2023. By the end of 2024, the net profit margin decreased to 5.42%, indicating a slight decline in the company's bottom-line profitability.
In summary, Textron Inc's profitability ratios have experienced fluctuations over the years, with varying margins reflecting changes in the company's cost management, operating efficiency, and overall profitability.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -17.02% | -12.86% | -12.54% | -12.03% | -11.04% | -10.81% | -11.15% | -11.18% | -11.47% | -12.15% | -12.98% | -13.36% | 32.31% | 51.87% | 69.84% | 90.06% | 75.43% | 59.85% | 43.10% | 26.91% |
| Return on assets (ROA) | 4.53% | 5.42% | 5.67% | 5.46% | 5.75% | 5.49% | 5.24% | 5.28% | 5.28% | 5.05% | 4.83% | 4.71% | 5.08% | 4.58% | 2.79% | 2.00% | 1.71% | 2.44% | 4.30% | 5.43% |
| Return on total capital | -39.78% | -30.43% | -29.71% | -29.03% | -25.75% | -18.18% | -11.34% | -2.90% | 16.77% | 16.03% | 15.17% | 14.88% | 16.40% | 14.72% | 9.49% | 7.66% | 7.73% | 10.31% | 17.49% | 20.17% |
| Return on equity (ROE) | 10.59% | 12.82% | 13.43% | 13.18% | 13.43% | 12.87% | 12.26% | 12.10% | 12.45% | 11.79% | 11.10% | 10.95% | 12.84% | 11.56% | 7.17% | 5.29% | 4.74% | 6.82% | 12.40% | 14.77% |
Profitability ratios provide insight into a company's ability to generate profits relative to its assets and capital. Let's delve into the profitability ratios of Textron Inc:
1. Operating return on assets (Operating ROA) has shown a decline from a high of 90.06% on December 31, 2020, to a negative figure of -17.02% on December 31, 2024. This indicates that the company's operating performance in generating profits from its assets has deteriorated significantly over the time period analyzed.
2. Return on assets (ROA) has fluctuated but generally maintained a positive trend, with a range of 1.71% on September 30, 2020, to 5.75% on September 30, 2023. The ratio reflects the company's ability to generate profits from its total assets, which has shown relative stability and improvement over the years.
3. Return on total capital has experienced a tumultuous journey, starting at 20.17% on December 31, 2019, and plummeting to -39.78% on December 31, 2024. This ratio highlights the company's effectiveness in generating returns for both equity and debt holders, showing a concerning downward trend over the years.
4. Return on equity (ROE) has followed a similar pattern to ROA, showcasing a relatively stable performance. It ranged from 4.74% on September 30, 2020, to 13.43% on September 30, 2023. ROE signifies the return earned on shareholders' equity, and Textron Inc has managed to maintain a consistent level of profitability in relation to its equity base.
Overall, the analysis reveals that Textron Inc has faced challenges in maintaining profitability, particularly in generating returns on total capital. The positive trends in ROA and ROE suggest some resilience, but the company needs to address the declining operating performance to ensure sustainable profitability in the future.