Common-Size Income Statement
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
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Texas Instruments Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The common-size income statement reveals several noteworthy trends over the five-year period. A consistent decline in profitability is observed, accompanied by increasing costs and fluctuating expense management. Revenue is consistently represented as 100% throughout the period, allowing for a clear view of expense and profit margins as percentages of sales.
- Gross Profit Margin
- The gross profit margin experienced a slight increase from 67.47% in 2021 to 68.76% in 2022, but subsequently declined to 57.02% in 2025. This suggests increasing pressure on production costs or pricing strategies over the latter part of the period. The most significant decrease occurred between 2022 and 2023, and 2023 and 2024.
- Operating Expenses
- Research and development (R&D) expenses increased as a percentage of revenue from 8.47% in 2021 to 12.52% in 2024, before decreasing slightly to 11.78% in 2025. Selling, general, and administrative (SG&A) expenses followed a similar pattern, rising from 9.08% to 11.47% in 2024 and then decreasing to 10.52% in 2025. These increases in operating expenses contributed to the decline in operating profit.
- Operating Profit Margin
- The operating profit margin decreased substantially from 48.84% in 2021 to 34.06% in 2025. This decline reflects the combined impact of rising costs of revenue and increasing operating expenses. The largest single-year decrease was observed between 2023 and 2024.
- Non-Operating Items
- Other income increased significantly in 2023 and 2024, peaking at 3.41% of revenue, before decreasing to 1.46% in 2025. Interest and debt expense consistently increased as a percentage of revenue, rising from 1.00% in 2021 to 3.25% in 2024, and then decreasing slightly to 3.07% in 2025. These fluctuations in non-operating items partially offset the decline in operating profit, but did not fully compensate for it.
- Net Profit Margin
- The net profit margin mirrored the trend in operating profit, declining from 42.35% in 2021 to 28.28% in 2025. The provision for income taxes remained relatively stable as a percentage of revenue, ranging from 6.27% to 6.41% during the period. The decline in net income is primarily attributable to the decrease in operating profit and, to a lesser extent, the increase in interest expense.
- Charges and Impairments
- Acquisition charges were present in 2021, but absent in subsequent years. Restructuring charges were notable in 2022 and 2025, and a small restructuring charge was present in 2024. A goodwill impairment was recorded in 2025, further impacting net income. These charges suggest potential strategic shifts or adjustments within the company.
Overall, the financial performance indicates a weakening profitability trend. While revenue remained constant, increasing costs and expenses eroded margins. The company appears to be investing more heavily in R&D and SG&A, and is facing increasing interest expenses. The presence of restructuring and impairment charges suggests potential challenges in adapting to changing market conditions.