Textron Inc (TXT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $6,987,000K)
= 0.00
Based on the provided data, Textron Inc has consistently maintained a debt-to-capital ratio of 0.00 over the past five years (from 2019 to 2023). A debt-to-capital ratio of 0.00 implies that the company has not utilized any debt in its capital structure during this period.
This could indicate that Textron Inc has been financing its operations and investments primarily through equity or other non-debt sources. A lower debt-to-capital ratio generally signifies lower financial risk and less reliance on debt financing, which can be viewed positively by investors and creditors.
However, it is important to consider that a debt-to-capital ratio of 0.00 may also suggest limited leverage and potential missed opportunities to benefit from the tax advantages of debt. It would be beneficial for Textron Inc to periodically reevaluate its capital structure and financing options to optimize its cost of capital and maximize shareholder value.
Peer comparison
Dec 31, 2023