Texas Instruments Inc. (NASDAQ:TXN)

The financial performance, as indicated by the income statement items, demonstrates a period of volatility followed by substantial growth. Revenue experienced fluctuations throughout the period, while operating profit and net income exhibited similar patterns, though with varying magnitudes.

Revenue Trend

Revenue initially increased from 2005 to 2006, peaking at US$14,255 million. A subsequent decline occurred through 2009, reaching US$10,427 million. From 2010 through 2018, revenue generally trended upward, reaching US$15,784 million in 2018, but decreased in 2019 to US$14,383 million. A significant surge in revenue is observed from 2020 to 2022, increasing from US$14,461 million to US$20,028 million, before declining in 2023 and 2024 to US$17,519 million and US$15,641 million respectively. A slight increase is noted in 2025 to US$17,682 million.

Operating Profit Trend

Operating profit mirrored the revenue trend to some extent. It rose from US$2,791 million in 2005 to US$3,367 million in 2006, then peaked at US$3,497 million in 2007. A substantial decrease followed, reaching US$1,991 million in 2009. A strong recovery occurred between 2010 and 2018, with operating profit reaching US$6,713 million. A decrease was observed in 2019 to US$5,723 million, followed by a significant increase to US$8,960 million in 2020 and US$10,140 million in 2021. Operating profit then decreased in 2023 and 2024 to US$7,331 million and US$5,465 million respectively, with a slight increase to US$6,023 million in 2025.

Net Income Trend

Net income exhibited a similar pattern to operating profit. It increased significantly from US$2,324 million in 2005 to US$4,341 million in 2006, before declining to US$2,657 million in 2007. A decrease continued through 2009, reaching US$1,470 million. Net income recovered from 2010 to 2018, peaking at US$5,580 million. A decrease was observed in 2019 to US$5,017 million, followed by a substantial increase to US$7,769 million in 2020 and US$8,749 million in 2021. Net income then decreased in 2023 and 2024 to US$6,510 million and US$4,799 million respectively, with a slight increase to US$5,001 million in 2025.

The period between 2020 and 2022 represents a period of particularly strong growth in both revenue and profitability. The subsequent declines in 2023 and 2024 suggest a potential shift in market conditions or company-specific factors impacting performance. The slight recovery in 2025 may indicate stabilization, but further monitoring is warranted to confirm a sustained trend.

Over the period examined, both current assets and total assets exhibited fluctuating behavior. A general trend of decline was observed in the earlier years, followed by a period of growth and then stabilization, with a more significant increase in recent years.

Current Assets Trend

Current assets decreased from $9.185 billion in 2005 to $5.790 billion in 2008, representing a substantial reduction. A modest recovery occurred between 2008 and 2011, reaching $7.828 billion. From 2011 to 2016, the values remained relatively stable, fluctuating between approximately $7.074 billion and $8.734 billion. A notable increase began in 2017, accelerating through 2021, peaking at $13.685 billion. A slight decrease was observed in 2022 and 2023, followed by a further decline in 2024 and 2025.

Total Assets Trend

Total assets mirrored the trend of current assets to some extent. A decline was evident from $15.063 billion in 2005 to $11.923 billion in 2008. A significant jump occurred between 2010 and 2011, increasing from $13.401 billion to $20.497 billion. Following 2011, total assets experienced a period of fluctuation, decreasing to $16.230 billion in 2015 before gradually increasing again. The most substantial growth occurred between 2019 and 2023, with total assets rising from $18.018 billion to $32.348 billion. A decrease was observed in 2024 and 2025.

Relationship Between Current and Total Assets

Current assets consistently represented a significant portion of total assets throughout the period. The ratio of current assets to total assets generally ranged between 60% and 70%, suggesting a substantial reliance on liquid assets. The increase in both metrics in recent years indicates a potential expansion of the company’s operations or a build-up of cash reserves. The recent decline in both metrics in 2024 and 2025 warrants further investigation to determine the underlying causes.

The period from 2005 to 2025 demonstrates a dynamic asset structure. The initial decline, followed by growth and recent stabilization, suggests adaptation to changing market conditions and strategic investment decisions. The substantial increases observed in the later years require further analysis to understand the drivers behind this growth and its implications for the company’s financial health.

An examination of the balance sheet information reveals significant shifts in the company’s liabilities and stockholders’ equity between 2005 and 2025. Current liabilities exhibited fluctuation throughout the period, generally remaining between US$2 billion and US$3.6 billion. Total liabilities demonstrated a more pronounced increase, particularly from 2019 onwards, culminating in substantial figures by 2023 and 2024. Stockholders’ equity experienced a period of relative stability in the earlier years, followed by a notable surge in 2021 and 2022 before declining slightly in the final two years.

Total Liabilities Trend

Total liabilities began at US$3.1 billion in 2005, decreased to US$2.4 billion by 2006, and remained relatively stable until 2010. A substantial increase is observed in 2011, rising to US$9.5 billion, largely attributable to an increase in debt. While decreasing slightly in subsequent years, total liabilities resumed an upward trajectory from 2019, reaching US$15.5 billion in 2023 and US$18.6 billion in 2024 before decreasing to US$18.3 billion in 2025. This suggests a growing reliance on debt financing in recent years.

Debt Composition

Total debt was minimal between 2006 and 2010, but increased significantly in 2011 to US$5.6 billion. It then decreased steadily through 2015, before increasing again from 2016 onwards. The most substantial increases in total debt occurred between 2020 and 2024, rising from US$6.8 billion to US$13.6 billion. This indicates a deliberate strategy to leverage debt, potentially for acquisitions, research and development, or shareholder returns.

Stockholders’ Equity Evolution

Stockholders’ equity generally declined from US$11.9 billion in 2005 to US$9.9 billion in 2007. It then experienced a period of moderate growth, peaking at US$10.9 billion in 2011. From 2011 to 2019, equity remained relatively flat, fluctuating within a narrow range. A significant increase occurred in 2021 and 2022, reaching US$16.9 billion, before decreasing slightly to US$16.3 billion in 2025. This suggests periods of strong profitability and/or share repurchase activity contributing to equity growth, followed by potential dividend payouts or other factors leading to a slight decline.

The increasing trend in total liabilities, particularly driven by debt, warrants further investigation to assess the company’s ability to service its obligations. The substantial growth in stockholders’ equity in the later years is a positive sign, but the recent slight decline should be monitored. Overall, the balance sheet demonstrates a shift towards greater financial leverage in recent years, alongside a generally healthy equity position.

The cash flow statement reveals distinct patterns in the company’s financial activities over the period from 2005 to 2025. Operating activities consistently generate positive cash flow, though with considerable fluctuation. Investing activities demonstrate a pattern of significant outflows, punctuated by occasional inflows. Financing activities generally result in cash outflows, with some variability throughout the observed timeframe.

Operating Activities

Cash flow from operating activities began at US$3,772 million in 2005, decreased to US$2,453 million in 2006, and then increased to US$4,406 million in 2007. A subsequent decline to US$2,643 million occurred in 2009. From 2010 through 2013, the figures remained relatively stable, ranging between US$3,256 million and US$3,892 million. A notable increase began in 2014, peaking at US$8,756 million in 2021 before decreasing to US$7,153 million in 2025. This suggests a period of strong operational performance followed by a recent moderation.

Investing Activities

Cash flow from investing activities exhibited substantial volatility. A significant outflow of US$1,687 million was recorded in 2005, followed by a large inflow of US$3,091 million in 2006. The period from 2007 to 2011 generally showed outflows, with a particularly large outflow of US$6,172 million in 2011. Outflows continued through 2015, though at a reduced scale. From 2016 to 2019, outflows were relatively small, but increased significantly to US$4,095 million in 2020 and US$3,583 million in 2022. The final years of the period show a decreasing trend in outflows, reaching US$1,439 million in 2025. This pattern indicates active investment and divestment strategies.

Financing Activities

Cash flow from financing activities consistently showed net cash outflows throughout the period. The largest outflow occurred in 2005 at US$3,540 million, followed by US$5,568 million in 2006. Outflows generally decreased from 2007 to 2010, but remained substantial. A positive inflow of US$2,589 million was observed in 2011, but outflows resumed in subsequent years. The period from 2014 to 2019 saw consistently high outflows, peaking at US$6,718 million in 2020. Outflows moderated in the final years, reaching US$2,880 million in 2024 and US$5,689 million in 2025. This suggests a reliance on external financing and/or consistent returns of capital to investors.

Overall, the company demonstrates a capacity to generate cash from its core operations. However, significant capital expenditures and financing activities consistently require substantial cash outlays. The fluctuations in each category suggest dynamic shifts in investment strategies and capital structure management.

Over the period examined, basic and diluted earnings per share (EPS) exhibited considerable fluctuation. Initial values in the early 2000s were relatively modest, followed by a period of growth, then decline, and ultimately a substantial increase in recent years. Dividend per share demonstrated a consistent upward trajectory throughout the entire period, indicating a growing commitment to returning value to shareholders.

Earnings Per Share (EPS)

Basic EPS increased from $1.42 in 2005 to $2.84 in 2006, representing significant growth. However, it subsequently decreased to $1.47 in 2008, before stabilizing around the $1.50 - $2.00 range between 2009 and 2012. A renewed period of growth commenced in 2013, culminating in a peak of $9.51 in 2022. A decrease to $7.13 in 2023 and further to $5.24 in 2024 was observed, followed by a slight recovery to $5.47 in 2025. Diluted EPS followed a similar pattern, consistently tracking closely with basic EPS.

Dividend Per Share

Dividend per share showed a steady and uninterrupted increase throughout the period. Starting at $0.11 in 2005, it rose incrementally each year, reaching $5.50 by 2025. This consistent growth suggests a strong financial position and a dedication to providing increasing returns to investors. The rate of increase accelerated in the later years of the period, particularly from 2016 onwards.

The divergence between EPS and dividend per share is notable. While EPS experienced periods of volatility, the dividend consistently increased. This suggests a deliberate strategy of maintaining and growing dividend payments even during periods of lower earnings, potentially signaling confidence in future profitability. The substantial increase in EPS from 2018 onwards coincided with an accelerated growth in dividend payments, indicating a positive correlation between earnings performance and shareholder returns.

The recent decline in EPS from 2022 to 2025, despite continued dividend growth, warrants further investigation. It could indicate increased investment in growth initiatives, changes in the company’s capital structure, or broader economic factors impacting profitability. The continued growth in dividends, even with declining EPS, may be supported by strong cash flow generation.