Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

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

Microsoft Excel

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
ROE = ROA × Financial Leverage
Mar 31, 2024 34.78% = 16.93% × 2.05
Dec 31, 2023 38.53% = 20.12% × 1.91
Sep 30, 2023 42.70% = 22.44% × 1.90
Jun 30, 2023 48.22% = 24.85% × 1.94
Mar 31, 2023 54.16% = 28.25% × 1.92
Dec 31, 2022 60.02% = 32.16% × 1.87
Sep 30, 2022 61.52% = 34.25% × 1.80
Jun 30, 2022 60.86% = 34.69% × 1.75
Mar 31, 2022 58.62% = 32.51% × 1.80
Dec 31, 2021 58.27% = 31.48% × 1.85
Sep 30, 2021 60.23% = 31.45% × 1.92
Jun 30, 2021 60.30% = 32.64% × 1.85
Mar 31, 2021 60.73% = 31.44% × 1.93
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 — = — × 2.00
Jun 30, 2019 — = — × 2.05
Mar 31, 2019 — = — × 2.05

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

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

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 34.78% = 35.16% × 0.48 × 2.05
Dec 31, 2023 38.53% = 37.16% × 0.54 × 1.91
Sep 30, 2023 42.70% = 39.21% × 0.57 × 1.90
Jun 30, 2023 48.22% = 40.84% × 0.61 × 1.94
Mar 31, 2023 54.16% = 42.33% × 0.67 × 1.92
Dec 31, 2022 60.02% = 43.68% × 0.74 × 1.87
Sep 30, 2022 61.52% = 44.21% × 0.77 × 1.80
Jun 30, 2022 60.86% = 43.78% × 0.79 × 1.75
Mar 31, 2022 58.62% = 43.34% × 0.75 × 1.80
Dec 31, 2021 58.27% = 42.35% × 0.74 × 1.85
Sep 30, 2021 60.23% = 41.61% × 0.76 × 1.92
Jun 30, 2021 60.30% = 40.12% × 0.81 × 1.85
Mar 31, 2021 60.73% = 40.04% × 0.79 × 1.93
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 — = — × — × 2.00
Jun 30, 2019 — = — × — × 2.05
Mar 31, 2019 — = — × — × 2.05

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

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

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2024 34.78% = 0.87 × 0.94 × 42.65% × 0.48 × 2.05
Dec 31, 2023 38.53% = 0.88 × 0.95 × 44.36% × 0.54 × 1.91
Sep 30, 2023 42.70% = 0.88 × 0.96 × 46.11% × 0.57 × 1.90
Jun 30, 2023 48.22% = 0.88 × 0.97 × 48.05% × 0.61 × 1.94
Mar 31, 2023 54.16% = 0.87 × 0.98 × 49.65% × 0.67 × 1.92
Dec 31, 2022 60.02% = 0.87 × 0.98 × 51.16% × 0.74 × 1.87
Sep 30, 2022 61.52% = 0.86 × 0.98 × 52.16% × 0.77 × 1.80
Jun 30, 2022 60.86% = 0.86 × 0.98 × 51.76% × 0.79 × 1.75
Mar 31, 2022 58.62% = 0.86 × 0.98 × 51.14% × 0.75 × 1.80
Dec 31, 2021 58.27% = 0.87 × 0.98 × 49.62% × 0.74 × 1.85
Sep 30, 2021 60.23% = 0.87 × 0.98 × 48.70% × 0.76 × 1.92
Jun 30, 2021 60.30% = 0.87 × 0.98 × 47.02% × 0.81 × 1.85
Mar 31, 2021 60.73% = 0.92 × 0.97 × 44.89% × 0.79 × 1.93
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 — = — × — × — × — × 2.00
Jun 30, 2019 — = — × — × — × — × 2.05
Mar 31, 2019 — = — × — × — × — × 2.05

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2024 16.93% = 35.16% × 0.48
Dec 31, 2023 20.12% = 37.16% × 0.54
Sep 30, 2023 22.44% = 39.21% × 0.57
Jun 30, 2023 24.85% = 40.84% × 0.61
Mar 31, 2023 28.25% = 42.33% × 0.67
Dec 31, 2022 32.16% = 43.68% × 0.74
Sep 30, 2022 34.25% = 44.21% × 0.77
Jun 30, 2022 34.69% = 43.78% × 0.79
Mar 31, 2022 32.51% = 43.34% × 0.75
Dec 31, 2021 31.48% = 42.35% × 0.74
Sep 30, 2021 31.45% = 41.61% × 0.76
Jun 30, 2021 32.64% = 40.12% × 0.81
Mar 31, 2021 31.44% = 40.04% × 0.79
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 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2024 16.93% = 0.87 × 0.94 × 42.65% × 0.48
Dec 31, 2023 20.12% = 0.88 × 0.95 × 44.36% × 0.54
Sep 30, 2023 22.44% = 0.88 × 0.96 × 46.11% × 0.57
Jun 30, 2023 24.85% = 0.88 × 0.97 × 48.05% × 0.61
Mar 31, 2023 28.25% = 0.87 × 0.98 × 49.65% × 0.67
Dec 31, 2022 32.16% = 0.87 × 0.98 × 51.16% × 0.74
Sep 30, 2022 34.25% = 0.86 × 0.98 × 52.16% × 0.77
Jun 30, 2022 34.69% = 0.86 × 0.98 × 51.76% × 0.79
Mar 31, 2022 32.51% = 0.86 × 0.98 × 51.14% × 0.75
Dec 31, 2021 31.48% = 0.87 × 0.98 × 49.62% × 0.74
Sep 30, 2021 31.45% = 0.87 × 0.98 × 48.70% × 0.76
Jun 30, 2021 32.64% = 0.87 × 0.98 × 47.02% × 0.81
Mar 31, 2021 31.44% = 0.92 × 0.97 × 44.89% × 0.79
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 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

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

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2024 35.16% = 0.87 × 0.94 × 42.65%
Dec 31, 2023 37.16% = 0.88 × 0.95 × 44.36%
Sep 30, 2023 39.21% = 0.88 × 0.96 × 46.11%
Jun 30, 2023 40.84% = 0.88 × 0.97 × 48.05%
Mar 31, 2023 42.33% = 0.87 × 0.98 × 49.65%
Dec 31, 2022 43.68% = 0.87 × 0.98 × 51.16%
Sep 30, 2022 44.21% = 0.86 × 0.98 × 52.16%
Jun 30, 2022 43.78% = 0.86 × 0.98 × 51.76%
Mar 31, 2022 43.34% = 0.86 × 0.98 × 51.14%
Dec 31, 2021 42.35% = 0.87 × 0.98 × 49.62%
Sep 30, 2021 41.61% = 0.87 × 0.98 × 48.70%
Jun 30, 2021 40.12% = 0.87 × 0.98 × 47.02%
Mar 31, 2021 40.04% = 0.92 × 0.97 × 44.89%
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 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in net profit margin ratio over Q1 2024 is the decrease in operating profitability measured by EBIT margin ratio.