Textron Inc (TXT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 6,987,000 | 7,113,000 | 6,815,000 | 5,845,000 | 5,518,000 |
| ROE | 13.18% | 12.10% | 10.95% | 5.29% | 14.77% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $921,000K ÷ $6,987,000K
= 13.18%
Textron Inc's return on equity (ROE) has fluctuated over the past five years, ranging from a low of 5.29% in 2020 to a high of 14.77% in 2019. The ROE for 2023 stands at 13.18%, reflecting an improvement compared to the previous year's 12.10%. This indicates that the company's ability to generate profits from its shareholder equity has strengthened. However, it is essential to note that the ROE in 2023 is still below the peak observed in 2019. Further analysis is needed to understand the factors driving Textron Inc's ROE performance and whether the recent upward trend can be sustained.
Peer comparison
Dec 31, 2023