Textron Inc (TXT)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -2,028,000 | -1,821,000 | 1,014,000 | 448,000 | 1,113,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,987,000 | 7,113,000 | 6,815,000 | 5,845,000 | 5,518,000 |
| Return on total capital | -29.03% | -25.60% | 14.88% | 7.66% | 20.17% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-2,028,000K ÷ ($—K + $6,987,000K)
= -29.03%
The return on total capital for Textron Inc has shown fluctuations over the past five years. In 2023, the return on total capital was negative, indicating that the company incurred a loss on its total capital investments. This marks a significant decline compared to the negative return on total capital in 2022.
However, in 2021, the return on total capital was positive at 14.88%, reflecting a profitable return on the total capital employed by the company. While this was a notable improvement from the previous year, the return on total capital was even higher in 2019 at 20.17%.
The fluctuations in Textron Inc's return on total capital suggest varying levels of profitability and efficiency in utilizing its total capital resources over the past five years. The negative returns in recent years may indicate challenges or economic factors impacting the company's performance. Further analysis of the company's financial health and operational efficiency would be needed to provide a more in-depth assessment of its overall performance.
Peer comparison
Dec 31, 2023