Textron Inc (TXT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 824,000 | 921,000 | 861,000 | 746,000 | 309,000 |
| Total assets | US$ in thousands | 16,838,000 | 16,856,000 | 16,293,000 | 15,827,000 | 15,443,000 |
| ROA | 4.89% | 5.46% | 5.28% | 4.71% | 2.00% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $824,000K ÷ $16,838,000K
= 4.89%
Over the past five years, Textron Inc has shown a positive trend in its return on assets (ROA) ratio, which indicates the efficiency of the company in generating profits relative to its total assets. The ROA increased from 2.00% as of December 31, 2020, to 5.46% as of December 31, 2023, representing a significant improvement in asset utilization and profitability. However, in the most recent year ending December 31, 2024, the ROA decreased slightly to 4.89%.
This overall upward trend in ROA suggests that Textron Inc has been effectively managing its assets to generate higher returns. It is essential for investors to monitor this ratio as it provides insights into the company's operational efficiency and profitability. The recent dip in ROA may warrant further investigation to identify any potential factors impacting the company's asset productivity.
Peer comparison
Dec 31, 2024