Textron Inc (TXT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,856,000 | 16,492,000 | 16,485,000 | 16,393,000 | 16,293,000 | 15,956,000 | 15,879,000 | 15,911,000 | 15,827,000 | 15,269,000 | 15,379,000 | 15,414,000 | 15,443,000 | 15,861,000 | 15,471,000 | 15,946,000 | 15,018,000 | 15,062,000 | 14,796,000 | 14,480,000 |
| 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 |
| Financial leverage ratio | 2.41 | 2.33 | 2.34 | 2.34 | 2.29 | 2.36 | 2.33 | 2.30 | 2.32 | 2.53 | 2.52 | 2.57 | 2.64 | 2.76 | 2.80 | 2.88 | 2.72 | 2.76 | 2.77 | 2.77 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,856,000K ÷ $6,987,000K
= 2.41
The financial leverage ratio of Textron Inc has shown fluctuations over the past few quarters. The ratio has ranged from 2.29 to 2.88 during the period from March 31, 2019, to December 31, 2023, indicating varying levels of financial leverage. A higher financial leverage ratio suggests that the company relies more on debt to finance its operations and investments.
From the data provided, it is evident that Textron Inc's financial leverage ratio peaked at 2.88 on March 31, 2020, before gradually decreasing to 2.34 on Jun 30, 2023. However, the ratio has shown some volatility since then, with fluctuations indicating potential changes in the company's debt levels.
Overall, a financial leverage ratio above 2 indicates that Textron Inc's capital structure is more debt-heavy than equity-heavy. It is essential for investors and stakeholders to monitor the financial leverage ratio closely to assess the company's risk and financial stability.
Peer comparison
Dec 31, 2023