Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Texas Instruments Inc. (NASDAQ:TXN)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Texas Instruments Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Dec 31, 2020 60.90% = 28.91% × 2.11
Sep 30, 2020 59.78% = 27.34% × 2.19
Jun 30, 2020 66.05% = 28.94% × 2.28
Mar 31, 2020 64.31% = 28.78% × 2.23
Dec 31, 2019 56.33% = 27.84% × 2.02
Sep 30, 2019 57.72% = 28.82% × 2.00
Jun 30, 2019 62.82% = 30.67% × 2.05
Mar 31, 2019 63.75% = 31.14% × 2.05
Dec 31, 2018 62.04% = 32.56% × 1.91
Sep 30, 2018 44.55% = 25.22% × 1.77
Jun 30, 2018 41.38% = 23.75% × 1.74
Mar 31, 2018 38.07% = 23.14% × 1.65
Dec 31, 2017 35.62% = 20.87% × 1.71
Sep 30, 2017 39.91% = 25.90% × 1.54
Jun 30, 2017 38.46% = 25.05% × 1.54
Mar 31, 2017 36.48% = 24.29% × 1.50
Dec 31, 2016 34.33% = 21.88% × 1.57
Sep 30, 2016 — = — × 1.58
Jun 30, 2016 — = — × 1.58
Mar 31, 2016 — = — × 1.60

Based on: 10-K (filing date: 2021-02-05), 10-Q (filing date: 2020-10-21), 10-Q (filing date: 2020-07-22), 10-Q (filing date: 2020-04-22), 10-K (filing date: 2020-02-20), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-04).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2020 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Texas Instruments Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 60.90% = 38.69% × 0.75 × 2.11
Sep 30, 2020 59.78% = 36.24% × 0.75 × 2.19
Jun 30, 2020 66.05% = 36.88% × 0.78 × 2.28
Mar 31, 2020 64.31% = 35.23% × 0.82 × 2.23
Dec 31, 2019 56.33% = 34.88% × 0.80 × 2.02
Sep 30, 2019 57.72% = 35.16% × 0.82 × 2.00
Jun 30, 2019 62.82% = 34.98% × 0.88 × 2.05
Mar 31, 2019 63.75% = 34.84% × 0.89 × 2.05
Dec 31, 2018 62.04% = 35.35% × 0.92 × 1.91
Sep 30, 2018 44.55% = 29.62% × 0.85 × 1.77
Jun 30, 2018 41.38% = 28.08% × 0.85 × 1.74
Mar 31, 2018 38.07% = 26.39% × 0.88 × 1.65
Dec 31, 2017 35.62% = 24.61% × 0.85 × 1.71
Sep 30, 2017 39.91% = 29.98% × 0.86 × 1.54
Jun 30, 2017 38.46% = 29.03% × 0.86 × 1.54
Mar 31, 2017 36.48% = 28.20% × 0.86 × 1.50
Dec 31, 2016 34.33% = 26.89% × 0.81 × 1.57
Sep 30, 2016 — = — × — × 1.58
Jun 30, 2016 — = — × — × 1.58
Mar 31, 2016 — = — × — × 1.60

Based on: 10-K (filing date: 2021-02-05), 10-Q (filing date: 2020-10-21), 10-Q (filing date: 2020-07-22), 10-Q (filing date: 2020-04-22), 10-K (filing date: 2020-02-20), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-04).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2020 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Texas Instruments Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2020 60.90% = 0.93 × 0.97 × 42.92% × 0.75 × 2.11
Sep 30, 2020 59.78% = 0.93 × 0.97 × 40.29% × 0.75 × 2.19
Jun 30, 2020 66.05% = 0.95 × 0.97 × 40.33% × 0.78 × 2.28
Mar 31, 2020 64.31% = 0.89 × 0.97 × 40.74% × 0.82 × 2.23
Dec 31, 2019 56.33% = 0.88 × 0.97 × 41.01% × 0.80 × 2.02
Sep 30, 2019 57.72% = 0.87 × 0.97 × 41.59% × 0.82 × 2.00
Jun 30, 2019 62.82% = 0.84 × 0.98 × 42.47% × 0.88 × 2.05
Mar 31, 2019 63.75% = 0.83 × 0.98 × 42.66% × 0.89 × 2.05
Dec 31, 2018 62.04% = 0.83 × 0.98 × 43.15% × 0.92 × 1.91
Sep 30, 2018 44.55% = 0.70 × 0.98 × 43.26% × 0.85 × 1.77
Jun 30, 2018 41.38% = 0.67 × 0.99 × 42.69% × 0.85 × 1.74
Mar 31, 2018 38.07% = 0.64 × 0.99 × 42.10% × 0.88 × 1.65
Dec 31, 2017 35.62% = 0.61 × 0.99 × 41.16% × 0.85 × 1.71
Sep 30, 2017 39.91% = 0.73 × 0.99 × 41.73% × 0.86 × 1.54
Jun 30, 2017 38.46% = 0.73 × 0.99 × 40.14% × 0.86 × 1.54
Mar 31, 2017 36.48% = 0.74 × 0.99 × 38.59% × 0.86 × 1.50
Dec 31, 2016 34.33% = 0.73 × 0.98 × 37.47% × 0.81 × 1.57
Sep 30, 2016 — = — × — × — × — × 1.58
Jun 30, 2016 — = — × — × — × — × 1.58
Mar 31, 2016 — = — × — × — × — × 1.60

Based on: 10-K (filing date: 2021-02-05), 10-Q (filing date: 2020-10-21), 10-Q (filing date: 2020-07-22), 10-Q (filing date: 2020-04-22), 10-K (filing date: 2020-02-20), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-04).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2020 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Texas Instruments Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2020 28.91% = 38.69% × 0.75
Sep 30, 2020 27.34% = 36.24% × 0.75
Jun 30, 2020 28.94% = 36.88% × 0.78
Mar 31, 2020 28.78% = 35.23% × 0.82
Dec 31, 2019 27.84% = 34.88% × 0.80
Sep 30, 2019 28.82% = 35.16% × 0.82
Jun 30, 2019 30.67% = 34.98% × 0.88
Mar 31, 2019 31.14% = 34.84% × 0.89
Dec 31, 2018 32.56% = 35.35% × 0.92
Sep 30, 2018 25.22% = 29.62% × 0.85
Jun 30, 2018 23.75% = 28.08% × 0.85
Mar 31, 2018 23.14% = 26.39% × 0.88
Dec 31, 2017 20.87% = 24.61% × 0.85
Sep 30, 2017 25.90% = 29.98% × 0.86
Jun 30, 2017 25.05% = 29.03% × 0.86
Mar 31, 2017 24.29% = 28.20% × 0.86
Dec 31, 2016 21.88% = 26.89% × 0.81
Sep 30, 2016 — = — × —
Jun 30, 2016 — = — × —
Mar 31, 2016 — = — × —

Based on: 10-K (filing date: 2021-02-05), 10-Q (filing date: 2020-10-21), 10-Q (filing date: 2020-07-22), 10-Q (filing date: 2020-04-22), 10-K (filing date: 2020-02-20), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-04).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2020 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Texas Instruments Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2020 28.91% = 0.93 × 0.97 × 42.92% × 0.75
Sep 30, 2020 27.34% = 0.93 × 0.97 × 40.29% × 0.75
Jun 30, 2020 28.94% = 0.95 × 0.97 × 40.33% × 0.78
Mar 31, 2020 28.78% = 0.89 × 0.97 × 40.74% × 0.82
Dec 31, 2019 27.84% = 0.88 × 0.97 × 41.01% × 0.80
Sep 30, 2019 28.82% = 0.87 × 0.97 × 41.59% × 0.82
Jun 30, 2019 30.67% = 0.84 × 0.98 × 42.47% × 0.88
Mar 31, 2019 31.14% = 0.83 × 0.98 × 42.66% × 0.89
Dec 31, 2018 32.56% = 0.83 × 0.98 × 43.15% × 0.92
Sep 30, 2018 25.22% = 0.70 × 0.98 × 43.26% × 0.85
Jun 30, 2018 23.75% = 0.67 × 0.99 × 42.69% × 0.85
Mar 31, 2018 23.14% = 0.64 × 0.99 × 42.10% × 0.88
Dec 31, 2017 20.87% = 0.61 × 0.99 × 41.16% × 0.85
Sep 30, 2017 25.90% = 0.73 × 0.99 × 41.73% × 0.86
Jun 30, 2017 25.05% = 0.73 × 0.99 × 40.14% × 0.86
Mar 31, 2017 24.29% = 0.74 × 0.99 × 38.59% × 0.86
Dec 31, 2016 21.88% = 0.73 × 0.98 × 37.47% × 0.81
Sep 30, 2016 — = — × — × — × —
Jun 30, 2016 — = — × — × — × —
Mar 31, 2016 — = — × — × — × —

Based on: 10-K (filing date: 2021-02-05), 10-Q (filing date: 2020-10-21), 10-Q (filing date: 2020-07-22), 10-Q (filing date: 2020-04-22), 10-K (filing date: 2020-02-20), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-04).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2020 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Texas Instruments Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2020 38.69% = 0.93 × 0.97 × 42.92%
Sep 30, 2020 36.24% = 0.93 × 0.97 × 40.29%
Jun 30, 2020 36.88% = 0.95 × 0.97 × 40.33%
Mar 31, 2020 35.23% = 0.89 × 0.97 × 40.74%
Dec 31, 2019 34.88% = 0.88 × 0.97 × 41.01%
Sep 30, 2019 35.16% = 0.87 × 0.97 × 41.59%
Jun 30, 2019 34.98% = 0.84 × 0.98 × 42.47%
Mar 31, 2019 34.84% = 0.83 × 0.98 × 42.66%
Dec 31, 2018 35.35% = 0.83 × 0.98 × 43.15%
Sep 30, 2018 29.62% = 0.70 × 0.98 × 43.26%
Jun 30, 2018 28.08% = 0.67 × 0.99 × 42.69%
Mar 31, 2018 26.39% = 0.64 × 0.99 × 42.10%
Dec 31, 2017 24.61% = 0.61 × 0.99 × 41.16%
Sep 30, 2017 29.98% = 0.73 × 0.99 × 41.73%
Jun 30, 2017 29.03% = 0.73 × 0.99 × 40.14%
Mar 31, 2017 28.20% = 0.74 × 0.99 × 38.59%
Dec 31, 2016 26.89% = 0.73 × 0.98 × 37.47%
Sep 30, 2016 — = — × — × —
Jun 30, 2016 — = — × — × —
Mar 31, 2016 — = — × — × —

Based on: 10-K (filing date: 2021-02-05), 10-Q (filing date: 2020-10-21), 10-Q (filing date: 2020-07-22), 10-Q (filing date: 2020-04-22), 10-K (filing date: 2020-02-20), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-07-31), 10-Q (filing date: 2019-04-30), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-11-02), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-03), 10-K (filing date: 2018-02-22), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-03), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-04).

The primary reason for the increase in net profit margin ratio over Q4 2020 is the increase in operating profitability measured by EBIT margin ratio.