Introduction
Textron is a business model that allows you to make money by doing any number of different things. It can be used in many industries and with a variety of products, but it’s most commonly used to sell services. The Textron model is a great way to earn passive income because it doesn’t require any upfront investment or ongoing costs to operate. Learn more about this new way of earning money online by reading our full guide!
What is Textron?
Textron is a diversified technology and industrial manufacturing company founded in 1923. Its portfolio includes Bell Helicopter, Cessna Aircraft Company, Beechcraft Corporation, and Textron Systems. The company’s products include rotorcraft (helicopters), jet aircraft, fixed-wing military aircraft and unmanned aerial vehicles; aerospace propulsion systems for military and commercial use; defense electronics; industrial equipment for the oil & gas industry on land or at sea; rail transportation systems such as locomotives, railroad cars and high speed trainsets; snowmobiles and personal watercrafts.
Textron pros and cons
- Textron pros
- A diverse product line, including the Cessna and Beechcraft aircraft lines, Bell helicopters and Textron Systems among others.
- Strong balance sheet with a debt-to-equity ratio of 9%.
- Textron cons:
- Anemic growth for all but one business segment (Helicopters).
- The overall stock market has had better performance than the aerospace industry over the past five years
How does a Textron business model work?
The company has been around for more than 80 years, and it’s a perfect example of what we call a conglomerate. A conglomerate is when one company owns several other companies with no real central focus or theme. Textron is an example of this because they’re not just one thing—they’re several things.
In fact, Textron’s website lists their products as “aviation, business aviation, defense systems, industrial products and financial services.” That’s quite a few different areas! It may seem confusing at first glance but don’t worry about it too much—as long as you remember that conglomerates are made up of smaller companies (like Textron), there isn’t anything else to know about them.
What does the future hold for Textron?
Textron is a growing company. The company’s revenue has been increasing year over year, and Textron has grown its workforce by approximately 10% in the last three years.
Textron is also a good investment. As of this writing, shares in Textron have increased by almost 40% over the past decade, which means that if you had purchased $10,000 worth of stock back then and sold it today, you’d have made nearly $4,000 on top of your original investment—not bad! (And if you want to own shares yourself but don’t know where to start or are nervous about getting started on your own without professional guidance? You can always work with an online financial advisor.)
Learn how this new business model works, along with its advantages and disadvantages.
Textron is a conglomerate, which means that it has many different businesses under its umbrella. This makes the company more diverse and less reliant on any single product or service. Textron’s businesses include Bell Helicopter, Cessna Aircraft Company, Beechcraft Corporation, Hawker Aircraft Inc., Lycoming Engines and Textron Systems Military Products. It’s these subsidiaries that make up the bulk of Textron’s revenue—the company earned $3 billion from them in 2016 alone!
Conclusion
Textron is an exciting new business model that has a lot of potential to disrupt and change the world. It offers a way for companies to work together in new ways, while still maintaining their individuality and autonomy. Textron gives us a glimpse at what it might look like when we have more than one company working in concert with each other on a project or product. We can only hope that this model is adopted by others because it seems like such an improvement over traditional vertical integration models where companies do everything themselves from start-up all the way through production (and sometimes beyond).
