Common-Size Balance Sheet: Assets
Texas Instruments Inc., common-size consolidated balance sheet: assets
Based on: 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), 10-K (reporting date: 2020-12-31).
The analysis of the financial data over the five-year period reveals several notable trends in asset composition.
- Cash and cash equivalents
- There is a clear downward trend, decreasing from 16.06% of total assets in 2020 to 9.01% in 2024, indicating a reduction in liquidity or a shift toward other asset categories.
- Short-term investments
- These rose from 17.89% in 2020 to a peak of 22.12% in 2022, followed by a decline to 12.33% in 2024, suggesting active repositioning of short-term financial resources.
- Accounts receivable, net
- This component experienced a gradual decline from 7.31% to 4.84%, which could be indicative of efficient receivables management or changes in sales terms.
- Inventories
- Starting at 10.1% in 2020, inventories initially decreased to 7.74% in 2021, then steadily increased reaching 12.75% in 2024, implying changes in stock levels potentially linked to production planning or demand forecasting.
- CHIPS Act incentives (current assets)
- These appear starting in 2023 at 1.54%, rising to 2.55% in 2024, reflecting the impact of government incentives introduced in recent years.
- Other current assets (prepaid expenses and others)
- Both categories showed modest fluctuations, with prepaid expenses and other current assets rising gradually to 3.38% by 2024, suggesting increased prepayments or advance expenses.
- Current assets overall
- There is a consistent decline from 52.91% in 2020 to 42.32% in 2024, indicating a shift away from short-term assets within the total asset base.
- Property, plant, and equipment
- This asset class demonstrated a steady increase from 16.89% to 31.96%, reflecting significant investment in fixed assets over the period.
- Goodwill
- A notable downward trend from 22.54% to 12.28% suggests impairment, divestiture, or amortization effects reducing the intangible asset base.
- Deferred tax assets
- These have increased moderately from 1.77% to 2.64%, potentially indicative of greater future tax benefits.
- Capitalized software licenses
- Maintained a relatively low but slightly increasing proportion, rising from 0.63% to 0.72%, which may reflect ongoing capitalization of software development costs.
- Overfunded retirement plans
- Values fluctuated without a clear trend, remaining under 1% of total assets.
- CHIPS Act incentives (long-term assets)
- These incentives appeared in 2023 and showed substantial growth to 6.33% in 2024, emphasizing the increasing long-term impact of government support.
- Other long-term assets
- There was a steady increase from 3.98% to 9.43%, signaling growth in less explicitly categorized long-term holdings.
- Long-term assets overall
- Long-term assets increased from 47.09% to 57.68%, marking a strategic shift towards greater investment in longer-duration assets.
Overall, the data indicates a strategic transition from current to long-term assets, with significant growth in property, plant, and equipment and an increasing share of government incentives. The decline in liquidity measures and goodwill points to concerted asset reallocation and potential write-downs or restructuring activities. The increasing deferred tax assets and capitalized software also suggest investments in future-oriented and intangible asset categories.