Textron Inc (TXT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.34 | 2.37 | 2.37 | 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 |
Textron Inc's solvency ratios indicate a strong financial position in terms of debt management. The Debt-to-Assets ratio consistently remained at 0.00 from 2019 to 2024, suggesting that the company did not rely heavily on debt to finance its assets. Similarly, the Debt-to-Capital ratio and Debt-to-Equity ratio also remained stable at 0.00 throughout the same period, indicating a low level of financial leverage and financial risk.
The Financial Leverage ratio decreased steadily from 2019 to 2024, showcasing a declining trend in the company's usage of debt in its capital structure. This reduction in financial leverage indicates that Textron Inc has been gradually shifting towards a more conservative and sustainable financial strategy, potentially reducing its risk exposure and enhancing its overall solvency position.
Overall, the consistent low levels of debt ratios and the decreasing trend in the Financial Leverage ratio demonstrate Textron Inc's strong solvency and efficient debt management practices during the period analyzed.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -31.49 | -25.18 | -26.74 | -26.34 | -26.38 | -15.79 | -8.46 | -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 |
The interest coverage ratio for Textron Inc has experienced significant fluctuations over the reporting periods provided. Starting at a healthy level of 6.51 on December 31, 2019, the ratio declined to 2.66 on September 30, 2020, indicating a potential decrease in the company's ability to cover its interest expenses with its operating income. However, from March 31, 2021, the interest coverage ratio began to improve steadily, reaching a peak of 8.79 on September 30, 2022.
Subsequently, the interest coverage ratio turned negative, indicating that the company's operating income was insufficient to cover its interest expenses. This negative trend continued, with the ratio deteriorating further by December 31, 2024, reaching a low of -31.49. A negative interest coverage ratio suggests that Textron Inc's operating income is inadequate to meet its interest obligations, raising concerns about its financial health and ability to service its debt.
Overall, the declining trend in Textron Inc's interest coverage ratio from 2022 to 2024 indicates a potential strain on its financial position and highlights the importance of monitoring the company's ability to generate sufficient income to cover its interest payments in the future.