Textron Inc (TXT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,838,000 | 16,856,000 | 16,293,000 | 15,827,000 | 15,443,000 |
| Total stockholders’ equity | US$ in thousands | 7,204,000 | 6,987,000 | 7,113,000 | 6,815,000 | 5,845,000 |
| Financial leverage ratio | 2.34 | 2.41 | 2.29 | 2.32 | 2.64 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,838,000K ÷ $7,204,000K
= 2.34
The financial leverage ratio of Textron Inc has exhibited a relatively stable trend over the past five years. As of December 31, 2020, the ratio stood at 2.64, indicating that the company's debt level was approximately 2.64 times its equity. Subsequently, there was a gradual decline in the financial leverage ratio to 2.32 by December 31, 2021, and further to 2.29 by December 31, 2022. This decrease suggests that Textron Inc may have been reducing its reliance on debt financing during these years.
However, there was a slight uptick in the financial leverage ratio to 2.41 by December 31, 2023, followed by a decrease to 2.34 by December 31, 2024. Overall, the trend suggests that Textron Inc has maintained a moderate level of financial leverage over the years, balancing its debt and equity structure to support its operations and growth initiatives. It is essential for the company to continue monitoring and managing its financial leverage ratio to ensure sustainable and optimal capital structure.
Peer comparison
Dec 31, 2024