Textron Inc (TXT)
Return on assets (ROA)
| 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 |
| Total assets | US$ in thousands | 16,856,000 | 16,293,000 | 15,827,000 | 15,443,000 | 15,018,000 |
| ROA | 5.46% | 5.28% | 4.71% | 2.00% | 5.43% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $921,000K ÷ $16,856,000K
= 5.46%
Textron Inc's return on assets (ROA) has exhibited fluctuations over the past five years. In 2023, the ROA increased to 5.46%, marking an improvement compared to the previous year's 5.28%. This suggests that the company generated $0.0546 in net income for every dollar of assets it holds. The upward trend in ROA indicates that Textron Inc is becoming more efficient in using its assets to generate profits.
Comparing to 2021, Textron Inc's ROA increased from 4.71% to 5.46% in 2023, signifying a positive performance in utilizing its assets for profitability. It is worth noting that the ROA in 2020 was notably lower at 2.00%, suggesting a lower return on the assets deployed by the company in that fiscal year.
While the ROA in 2019 was 5.43%, close to the 2023 value, the trend in between these two years shows variability. Overall, Textron Inc's recent improvement in ROA indicates a positive trajectory in its asset utilization efficiency and profitability.
Peer comparison
Dec 31, 2023