Analysis of Goodwill and Intangible Assets
Goodwill and Intangible Asset Disclosure
Texas Instruments Inc., balance sheet: goodwill and intangible assets
US$ in millions
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
Item | Description | The company |
---|---|---|
Acquisition-related intangibles, net | Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. | Texas Instruments Inc.’s acquisition-related intangibles, net decreased from 2017 to 2018 and from 2018 to 2019. |
Goodwill | Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. | |
Goodwill and acquisition-related intangibles | Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. | Texas Instruments Inc.’s goodwill and acquisition-related intangibles decreased from 2017 to 2018 and from 2018 to 2019. |
Adjustments to Financial Statements: Removal of Goodwill
Texas Instruments Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
Texas Instruments Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Texas Instruments Inc., adjusted financial ratios
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
Financial ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Texas Instruments Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Texas Instruments Inc.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019. |
Adjusted ROE | A profitability ratio calculated as net income divided by adjusted shareholders’ equity. | Texas Instruments Inc.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Texas Instruments Inc.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Texas Instruments Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Total Asset Turnover
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
2019 Calculations
1 Total asset turnover = Revenue ÷ Total assets
= 14,383 ÷ 18,018 = 0.80
2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 14,383 ÷ 13,656 = 1.05
Activity ratio | Description | The company |
---|---|---|
Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | Texas Instruments Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Adjusted Financial Leverage
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
2019 Calculations
1 Financial leverage = Total assets ÷ Stockholders’ equity
= 18,018 ÷ 8,907 = 2.02
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 13,656 ÷ 4,545 = 3.00
Solvency ratio | Description | The company |
---|---|---|
Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
Texas Instruments Inc.’s adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019. |
Adjusted Return on Equity (ROE)
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
2019 Calculations
1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,017 ÷ 8,907 = 56.33%
2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 5,017 ÷ 4,545 = 110.39%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as net income divided by adjusted shareholders’ equity. | Texas Instruments Inc.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Adjusted Return on Assets (ROA)
Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).
2019 Calculations
1 ROA = 100 × Net income ÷ Total assets
= 100 × 5,017 ÷ 18,018 = 27.84%
2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 5,017 ÷ 13,656 = 36.74%
Profitability ratio | Description | The company |
---|---|---|
Adjusted ROA | A profitability ratio calculated as net income divided by adjusted total assets. | Texas Instruments Inc.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |