Textron Inc (TXT)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -1,827,000 | -2,028,000 | -1,821,000 | 1,014,000 | 448,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,204,000 | 6,987,000 | 7,113,000 | 6,815,000 | 5,845,000 |
| Return on total capital | -25.36% | -29.03% | -25.60% | 14.88% | 7.66% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-1,827,000K ÷ ($—K + $7,204,000K)
= -25.36%
Textron Inc's return on total capital has exhibited significant fluctuations over the past few years.
In December 2020, the return on total capital stood at 7.66%, indicating a moderate level of profitability relative to the capital employed.
By December 2021, the return on total capital increased notably to 14.88%, reflecting an improvement in the company's ability to generate returns on its total capital.
However, the subsequent years saw a sharp decline in performance as Textron Inc's return on total capital dropped to -25.60% by December 2022, and further decreased to -29.03% by December 2023.
In December 2024, the negative trend continued, with the return on total capital improving slightly to -25.36%, but remaining in the negative territory.
These negative values suggest that the company may be facing challenges in generating profits relative to the total capital employed, which could be a cause for concern for investors and stakeholders. Further analysis and investigation into the factors driving these negative returns would be necessary to understand the underlying issues impacting Textron Inc's financial performance.
Peer comparison
Dec 31, 2024