Textron Inc (TXT)
Debt-to-equity ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 5,452,000 | 5,336,000 | 5,233,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,987,000K
= 0.00
The debt-to-equity ratio for Textron Inc has consistently been at 0.00 over the past five years, as indicated in the table. This suggests that the company has not relied on debt financing to fund its operations and growth, opting instead for equity financing or retaining earnings. A debt-to-equity ratio of 0.00 indicates that the company has no debt on its balance sheet in relation to shareholders' equity.
A low or 0.00 debt-to-equity ratio can be viewed positively by investors and creditors as it signifies a lower financial risk and a strong financial position. Companies with lower debt-to-equity ratios are generally considered to be more financially stable and less vulnerable to financial distress in periods of economic downturns.
Textron Inc's consistent 0.00 debt-to-equity ratio may imply a conservative financial strategy, where the company has chosen to manage its capital structure prudently by minimizing its debt levels. It could also indicate that the company has been able to generate enough internal funds or equity financing to support its operations and investments without the need for significant borrowing.
Overall, a debt-to-equity ratio of 0.00 reflects a healthier financial position for Textron Inc, indicating a lower reliance on debt financing and potentially a stronger foundation for sustainable growth and profitability.
Peer comparison
Dec 31, 2023