Textron Inc (TXT)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -2,866,000 | -2,115,000 | -2,059,000 | -2,028,000 | -1,820,000 | -1,279,000 | -795,000 | -206,000 | 1,134,000 | 1,090,000 | 1,049,000 | 1,014,000 | 990,000 | 898,000 | 569,000 | 448,000 | 444,000 | 570,000 | 968,000 | 1,113,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 7,204,000 | 6,951,000 | 6,931,000 | 6,987,000 | 7,067,000 | 7,034,000 | 7,008,000 | 7,113,000 | 6,762,000 | 6,801,000 | 6,917,000 | 6,815,000 | 6,037,000 | 6,101,000 | 5,996,000 | 5,845,000 | 5,741,000 | 5,527,000 | 5,534,000 | 5,518,000 |
| Return on total capital | -39.78% | -30.43% | -29.71% | -29.03% | -25.75% | -18.18% | -11.34% | -2.90% | 16.77% | 16.03% | 15.17% | 14.88% | 16.40% | 14.72% | 9.49% | 7.66% | 7.73% | 10.31% | 17.49% | 20.17% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-2,866,000K ÷ ($—K + $7,204,000K)
= -39.78%
Textron Inc's return on total capital has shown fluctuations over the past few years, indicating changes in the company's efficiency in generating profits from its total capital employed.
From December 2019 to June 2021, the return on total capital ranged from 10.31% to 20.17%, reflecting a reasonably healthy performance. However, there was a decline in the following periods up to September 2021, where the return decreased to 7.66%.
Subsequently, Textron Inc's return on total capital saw an improvement, reaching its peak of 16.77% in September 2022. However, the company faced challenges in the following periods, resulting in negative returns from December 2022 to December 2024.
The significant decline in return on total capital from -2.90% in December 2022 to -39.78% in December 2024 raises concerns about Textron Inc's ability to utilize its total capital effectively to generate profits during this period. Further analysis is required to understand the underlying reasons for this decline and to address potential issues affecting the company's profitability and capital efficiency.
Peer comparison
Dec 31, 2024