Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Texas Instruments Inc., profitability ratios
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Texas Instruments Inc. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Texas Instruments Inc. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Texas Instruments Inc. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Texas Instruments Inc. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Texas Instruments Inc. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Gross Profit Margin
Texas Instruments Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 11,019) | 13,771) | 12,376) | 9,269) | 9,164) | |
| Revenue | 17,519) | 20,028) | 18,344) | 14,461) | 14,383) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 62.90% | 68.76% | 67.47% | 64.10% | 63.71% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 46.12% | 44.93% | 48.25% | 44.53% | 42.61% | |
| Analog Devices Inc. | 64.01% | 62.70% | 61.83% | 65.87% | 67.00% | |
| Applied Materials Inc. | 46.70% | 46.51% | 47.32% | 44.72% | 43.72% | |
| Broadcom Inc. | 68.93% | 66.55% | 61.36% | 56.58% | 55.24% | |
| Intel Corp. | 40.04% | 42.61% | 55.45% | 56.01% | 58.56% | |
| KLA Corp. | 59.81% | 61.00% | 59.93% | 57.81% | 59.08% | |
| Lam Research Corp. | 44.62% | 45.69% | 46.53% | 45.88% | 45.15% | |
| Micron Technology Inc. | -9.11% | 45.18% | 37.62% | 30.57% | 45.72% | |
| NVIDIA Corp. | 56.93% | 64.93% | 62.34% | 61.99% | 61.21% | |
| ON Semiconductor Corp. | 47.06% | 48.97% | 40.27% | 32.65% | 35.77% | |
| Qualcomm Inc. | 55.70% | 57.84% | 57.51% | 60.67% | 64.57% | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 11,019 ÷ 17,519 = 62.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Texas Instruments Inc. gross profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Operating Profit Margin
Texas Instruments Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 7,331) | 10,140) | 8,960) | 5,894) | 5,723) | |
| Revenue | 17,519) | 20,028) | 18,344) | 14,461) | 14,383) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 41.85% | 50.63% | 48.84% | 40.76% | 39.79% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.77% | 5.36% | 22.20% | 14.02% | 9.37% | |
| Analog Devices Inc. | 31.07% | 27.29% | 23.12% | 26.74% | 28.55% | |
| Applied Materials Inc. | 28.86% | 30.20% | 29.87% | 25.37% | 22.93% | |
| Broadcom Inc. | 45.25% | 42.84% | 31.03% | 16.80% | 15.24% | |
| Intel Corp. | 0.17% | 3.70% | 24.62% | 30.41% | 30.62% | |
| KLA Corp. | 38.06% | 39.67% | 35.97% | 25.87% | 30.41% | |
| Lam Research Corp. | 29.69% | 31.24% | 30.64% | 26.62% | 25.53% | |
| Micron Technology Inc. | -36.97% | 31.54% | 22.68% | 14.01% | 31.51% | |
| NVIDIA Corp. | 15.66% | 37.31% | 27.18% | 26.07% | 32.47% | |
| ON Semiconductor Corp. | 30.76% | 28.34% | 19.10% | 6.64% | 7.84% | |
| Qualcomm Inc. | 21.74% | 35.88% | 29.16% | 26.58% | 31.59% | |
| Operating Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 18.86% | 27.37% | 28.08% | 25.44% | 27.87% | |
| Operating Profit Margin, Industry | ||||||
| Information Technology | 26.32% | 28.47% | 28.76% | 24.95% | 25.42% | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Revenue
= 100 × 7,331 ÷ 17,519 = 41.85%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Texas Instruments Inc. operating profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Profit Margin
Texas Instruments Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,510) | 8,749) | 7,769) | 5,595) | 5,017) | |
| Revenue | 17,519) | 20,028) | 18,344) | 14,461) | 14,383) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 37.16% | 43.68% | 42.35% | 38.69% | 34.88% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 3.77% | 5.59% | 19.24% | 25.50% | 5.07% | |
| Analog Devices Inc. | 26.94% | 22.88% | 19.00% | 21.79% | 22.75% | |
| Applied Materials Inc. | 25.86% | 25.31% | 25.53% | 21.04% | 18.52% | |
| Broadcom Inc. | 39.31% | 34.62% | 24.54% | 12.39% | 12.05% | |
| Intel Corp. | 3.11% | 12.71% | 25.14% | 26.84% | 29.25% | |
| KLA Corp. | 32.27% | 36.06% | 30.04% | 20.96% | 25.73% | |
| Lam Research Corp. | 25.88% | 26.73% | 26.72% | 22.42% | 22.70% | |
| Micron Technology Inc. | -37.54% | 28.24% | 21.16% | 12.54% | 26.97% | |
| NVIDIA Corp. | 16.19% | 36.23% | 25.98% | 25.61% | 35.34% | |
| ON Semiconductor Corp. | 26.46% | 22.85% | 14.98% | 4.46% | 3.84% | |
| Qualcomm Inc. | 20.19% | 29.27% | 26.94% | 22.09% | 18.07% | |
| Net Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 17.33% | 25.47% | 25.57% | 22.66% | 23.96% | |
| Net Profit Margin, Industry | ||||||
| Information Technology | 22.13% | 24.07% | 25.56% | 21.38% | 22.17% | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 6,510 ÷ 17,519 = 37.16%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Texas Instruments Inc. net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Equity (ROE)
Texas Instruments Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,510) | 8,749) | 7,769) | 5,595) | 5,017) | |
| Stockholders’ equity | 16,897) | 14,577) | 13,333) | 9,187) | 8,907) | |
| Profitability Ratio | ||||||
| ROE1 | 38.53% | 60.02% | 58.27% | 60.90% | 56.33% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.53% | 2.41% | 42.18% | 42.66% | 12.06% | |
| Analog Devices Inc. | 9.32% | 7.54% | 3.66% | 10.17% | 11.64% | |
| Applied Materials Inc. | 41.94% | 53.51% | 48.08% | 34.21% | 32.94% | |
| Broadcom Inc. | 58.70% | 50.62% | 26.99% | 12.40% | 10.92% | |
| Intel Corp. | 1.60% | 7.90% | 20.83% | 25.79% | 27.16% | |
| KLA Corp. | 116.01% | 237.04% | 61.53% | 45.65% | 44.21% | |
| Lam Research Corp. | 54.94% | 73.35% | 64.85% | 43.53% | 46.89% | |
| Micron Technology Inc. | -13.22% | 17.41% | 13.34% | 6.89% | 17.59% | |
| NVIDIA Corp. | 19.76% | 36.65% | 25.64% | 22.91% | 44.33% | |
| ON Semiconductor Corp. | 28.06% | 30.74% | 22.02% | 6.62% | 6.41% | |
| Qualcomm Inc. | 33.51% | 71.81% | 90.88% | 85.54% | 89.35% | |
| ROE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 13.62% | 22.84% | 25.72% | 24.23% | 26.49% | |
| ROE, Industry | ||||||
| Information Technology | 31.93% | 38.69% | 42.56% | 35.29% | 36.68% | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,510 ÷ 16,897 = 38.53%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Texas Instruments Inc. ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Return on Assets (ROA)
Texas Instruments Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 6,510) | 8,749) | 7,769) | 5,595) | 5,017) | |
| Total assets | 32,348) | 27,207) | 24,676) | 19,351) | 18,018) | |
| Profitability Ratio | ||||||
| ROA1 | 20.12% | 32.16% | 31.48% | 28.91% | 27.84% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.26% | 1.95% | 25.46% | 27.78% | 5.66% | |
| Analog Devices Inc. | 6.79% | 5.46% | 2.66% | 5.69% | 6.37% | |
| Applied Materials Inc. | 22.31% | 24.41% | 22.80% | 16.19% | 14.22% | |
| Broadcom Inc. | 19.33% | 15.69% | 8.91% | 3.90% | 4.04% | |
| Intel Corp. | 0.88% | 4.40% | 11.80% | 13.65% | 15.42% | |
| KLA Corp. | 24.07% | 26.37% | 20.23% | 13.11% | 13.05% | |
| Lam Research Corp. | 24.02% | 26.78% | 24.59% | 15.47% | 18.26% | |
| Micron Technology Inc. | -9.08% | 13.11% | 9.96% | 5.01% | 12.91% | |
| NVIDIA Corp. | 10.61% | 22.07% | 15.05% | 16.15% | 31.15% | |
| ON Semiconductor Corp. | 16.52% | 15.88% | 10.49% | 2.70% | 2.51% | |
| Qualcomm Inc. | 14.17% | 26.39% | 21.93% | 14.60% | 13.31% | |
| ROA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 7.60% | 12.74% | 13.56% | 11.62% | 13.13% | |
| ROA, Industry | ||||||
| Information Technology | 13.10% | 15.14% | 15.65% | 12.15% | 12.80% | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 6,510 ÷ 32,348 = 20.12%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Texas Instruments Inc. ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |