Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Texas Instruments Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.54 0.74 0.74 0.75 0.80
Adjusted 0.55 0.75 0.75 0.76 0.81
Liquidity Ratio
Current Ratio
Reported 4.55 4.70 5.33 4.28 4.13
Adjusted 4.56 4.70 5.33 4.29 4.13
Solvency Ratios
Debt to Equity
Reported 0.66 0.60 0.58 0.74 0.65
Adjusted 0.73 0.65 0.62 0.79 0.70
Debt to Capital
Reported 0.40 0.37 0.37 0.43 0.39
Adjusted 0.42 0.39 0.38 0.44 0.41
Financial Leverage
Reported 1.91 1.87 1.85 2.11 2.02
Adjusted 1.95 1.89 1.85 2.12 2.03
Profitability Ratios
Net Profit Margin
Reported 37.16% 43.68% 42.35% 38.69% 34.88%
Adjusted 35.75% 42.25% 43.45% 37.80% 36.05%
Return on Equity (ROE)
Reported 38.53% 60.02% 58.27% 60.90% 56.33%
Adjusted 38.62% 59.66% 60.52% 60.98% 58.95%
Return on Assets (ROA)
Reported 20.12% 32.16% 31.48% 28.91% 27.84%
Adjusted 19.82% 31.63% 32.64% 28.74% 29.08%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Texas Instruments Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Texas Instruments Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Texas Instruments Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Texas Instruments Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Texas Instruments Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Texas Instruments Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Texas Instruments Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Texas Instruments Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Revenue 17,519 20,028 18,344 14,461 14,383
Total assets 32,348 27,207 24,676 19,351 18,018
Activity Ratio
Total asset turnover1 0.54 0.74 0.74 0.75 0.80
Adjusted
Selected Financial Data (US$ in millions)
Revenue 17,519 20,028 18,344 14,461 14,383
Adjusted total assets2 31,607 26,747 24,421 19,019 17,829
Activity Ratio
Adjusted total asset turnover3 0.55 0.75 0.75 0.76 0.81

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
Total asset turnover = Revenue ÷ Total assets
= 17,519 ÷ 32,348 = 0.54

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 17,519 ÷ 31,607 = 0.55

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Texas Instruments Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 15,122 14,021 13,685 10,239 8,761
Current liabilities 3,320 2,985 2,569 2,390 2,123
Liquidity Ratio
Current ratio1 4.55 4.70 5.33 4.28 4.13
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 15,138 14,034 13,693 10,250 8,769
Current liabilities 3,320 2,985 2,569 2,390 2,123
Liquidity Ratio
Adjusted current ratio3 4.56 4.70 5.33 4.29 4.13

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
Current ratio = Current assets ÷ Current liabilities
= 15,122 ÷ 3,320 = 4.55

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 15,138 ÷ 3,320 = 4.56

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Texas Instruments Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 11,223 8,735 7,741 6,798 5,803
Stockholders’ equity 16,897 14,577 13,333 9,187 8,907
Solvency Ratio
Debt to equity1 0.66 0.60 0.58 0.74 0.65
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 11,789 9,154 8,206 7,119 6,135
Adjusted stockholders’ equity3 16,219 14,183 13,170 8,963 8,796
Solvency Ratio
Adjusted debt to equity4 0.73 0.65 0.62 0.79 0.70

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
Debt to equity = Total debt ÷ Stockholders’ equity
= 11,223 ÷ 16,897 = 0.66

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 11,789 ÷ 16,219 = 0.73

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Texas Instruments Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 11,223 8,735 7,741 6,798 5,803
Total capital 28,120 23,312 21,074 15,985 14,710
Solvency Ratio
Debt to capital1 0.40 0.37 0.37 0.43 0.39
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 11,789 9,154 8,206 7,119 6,135
Adjusted total capital3 28,008 23,337 21,376 16,082 14,931
Solvency Ratio
Adjusted debt to capital4 0.42 0.39 0.38 0.44 0.41

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
Debt to capital = Total debt ÷ Total capital
= 11,223 ÷ 28,120 = 0.40

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 11,789 ÷ 28,008 = 0.42

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Texas Instruments Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 32,348 27,207 24,676 19,351 18,018
Stockholders’ equity 16,897 14,577 13,333 9,187 8,907
Solvency Ratio
Financial leverage1 1.91 1.87 1.85 2.11 2.02
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 31,607 26,747 24,421 19,019 17,829
Adjusted stockholders’ equity3 16,219 14,183 13,170 8,963 8,796
Solvency Ratio
Adjusted financial leverage4 1.95 1.89 1.85 2.12 2.03

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
Financial leverage = Total assets ÷ Stockholders’ equity
= 32,348 ÷ 16,897 = 1.91

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 31,607 ÷ 16,219 = 1.95

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. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
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%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,263 8,461 7,971 5,466 5,185
Revenue 17,519 20,028 18,344 14,461 14,383
Profitability Ratio
Adjusted net profit margin3 35.75% 42.25% 43.45% 37.80% 36.05%

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 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 6,263 ÷ 17,519 = 35.75%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Texas Instruments Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
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%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,263 8,461 7,971 5,466 5,185
Adjusted stockholders’ equity3 16,219 14,183 13,170 8,963 8,796
Profitability Ratio
Adjusted ROE4 38.62% 59.66% 60.52% 60.98% 58.95%

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 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 6,263 ÷ 16,219 = 38.62%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Texas Instruments Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
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%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 6,263 8,461 7,971 5,466 5,185
Adjusted total assets3 31,607 26,747 24,421 19,019 17,829
Profitability Ratio
Adjusted ROA4 19.82% 31.63% 32.64% 28.74% 29.08%

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 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 6,263 ÷ 31,607 = 19.82%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Texas Instruments Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.