Textron Inc (TXT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.34 | 2.41 | 2.29 | 2.32 | 2.64 |
Textron Inc's solvency ratios indicate a strong financial position with consistently low debt levels relative to its assets and capital. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all stand at 0.00 across the years between December 31, 2020, and December 31, 2024, suggesting that the company is not heavily reliant on debt for its operations.
Furthermore, Textron Inc's Financial Leverage ratio has shown some fluctuation over the same period, ranging from 2.29 to 2.64. Despite this variability, the ratio remains relatively stable and indicates that the company's operations are financed primarily through equity rather than debt.
Overall, the solvency ratios suggest that Textron Inc has a conservative approach to managing its capital structure, maintaining a healthy balance between debt and equity to support its long-term financial stability and growth.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -18.84 | -26.34 | -17.02 | 7.14 | 2.70 |
The interest coverage ratio for Textron Inc has demonstrated fluctuations over the years, indicating varying levels of ability to cover interest expenses with operating income.
As of December 31, 2020, the interest coverage ratio stood at 2.70, suggesting that Textron had sufficient operating income to cover its interest payments.
By December 31, 2021, the interest coverage ratio improved significantly to 7.14, reflecting an enhanced capacity to meet interest obligations comfortably.
However, in the subsequent years, the interest coverage ratio took a negative turn, falling to -17.02 as of December 31, 2022. This negative ratio indicates a potential inability to cover interest expenses with operating income during that period, raising concerns about the company's financial health.
The trend continued to worsen in the following years, with the interest coverage ratios for December 31, 2023, and December 31, 2024, reaching -26.34 and -18.84, respectively. These figures highlight a severe strain on Textron's ability to service its debt obligations from operating profits.
Overall, the analysis of Textron Inc's interest coverage ratios indicates a mix of positive and concerning trends, underscoring the importance of monitoring the company's financial performance closely to ensure sustainable debt management.