Textron Inc (TXT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| Debt-to-capital 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 |
| 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 |
| 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 |
Based on the solvency ratios of Textron Inc over the past five years, it is evident that the company has maintained a consistently low debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 throughout the entire period. This indicates that Textron Inc has not relied heavily on debt to finance its operations and investments.
However, the financial leverage ratio has shown some fluctuation over the years, ranging from a low of 2.29 to a high of 2.88. The financial leverage ratio measures the company's financial risk associated with debt, with a higher ratio indicating higher financial risk. Textron Inc's financial leverage has been relatively stable around the 2.5 range in recent years, although there was a slight increase in leverage in the most recent quarter.
Overall, the solvency ratios suggest that Textron Inc has maintained a conservative approach to its capital structure, with minimal reliance on debt. The financial leverage ratio, while showing some variability, generally remains within a reasonable range, indicating that the company has managed its debt levels effectively to support its operations and growth.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -50.70 | -56.88 | -29.07 | -13.95 | -1.93 | 8.79 | 8.32 | 7.77 | 7.14 | 6.60 | 5.61 | 3.43 | 2.70 | 2.66 | 3.39 | 5.73 | 6.51 | 6.91 | 9.32 | 9.25 |
The interest coverage ratio for Textron Inc has shown significant fluctuations over the periods observed. The ratio indicates the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is generally preferred as it signifies that the company is more capable of meeting its interest obligations.
Textron Inc's interest coverage ratio has been negative for several periods, indicating that the company's operating income was not sufficient to cover its interest expenses during those times. This could raise concerns about the company's financial health and ability to service its debt.
In more recent periods, the interest coverage ratio has improved, moving from negative values to positive values. However, the ratio still fluctuates, which may indicate volatility in the company's financial performance.
Overall, Textron Inc's interest coverage ratio has shown variability, highlighting the importance of monitoring the company's ability to generate sufficient operating income to cover its interest expenses in order to maintain financial stability and meet its debt obligations.