Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Texas Instruments Inc., solvency ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Debt Ratios
Debt to equity 0.58 0.74 0.65 0.56 0.39
Debt to equity (including operating lease liability) 0.62 0.77 0.69 0.56 0.39
Debt to capital 0.37 0.43 0.39 0.36 0.28
Debt to capital (including operating lease liability) 0.38 0.44 0.41 0.36 0.28
Debt to assets 0.31 0.35 0.32 0.30 0.23
Debt to assets (including operating lease liability) 0.33 0.37 0.34 0.30 0.23
Financial leverage 1.85 2.11 2.02 1.91 1.71
Coverage Ratios
Interest coverage 49.47 32.67 34.69 54.49 78.95
Fixed charge coverage 29.86 21.33 21.68 33.77 39.24

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Texas Instruments Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Texas Instruments Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Texas Instruments Inc. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Texas Instruments Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Texas Instruments Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Texas Instruments Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Texas Instruments Inc. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Texas Instruments Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Texas Instruments Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Equity

Texas Instruments Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 500  550  500  749  500 
Long-term debt, excluding current portion 7,241  6,248  5,303  4,319  3,577 
Total debt 7,741  6,798  5,803  5,068  4,077 
 
Stockholders’ equity 13,333  9,187  8,907  8,994  10,337 
Solvency Ratio
Debt to equity1 0.58 0.74 0.65 0.56 0.39
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc. 0.04 0.06 0.17 0.99 2.28
Analog Devices Inc. 0.18 0.43 0.47 0.58 0.77
Applied Materials Inc. 0.45 0.52 0.65 0.78 0.57
Broadcom Inc. 1.59 1.72 1.32 0.66 0.87
First Solar Inc. 0.04 0.05 0.09 0.09 0.08
Intel Corp. 0.40 0.45 0.37 0.35 0.39
KLA Corp. 1.02 1.30 1.29 1.38 2.21
Lam Research Corp. 0.83 1.12 0.96 0.37 0.40
Micron Technology Inc. 0.15 0.17 0.16 0.14 0.60
NVIDIA Corp. 0.41 0.16 0.21 0.27 0.48
NXP Semiconductors N.V. 1.62 0.85 0.78 0.70 0.49
ON Semiconductor Corp. 0.68 0.99 1.09 0.87 1.06
Qualcomm Inc. 1.58 2.59 3.25 17.64 0.71
Debt to Equity, Sector
Semiconductors & Semiconductor Equipment 0.52 0.62 0.58 0.51 0.56
Debt to Equity, Industry
Information Technology 0.77 0.87 0.84 0.79 0.78

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 7,741 ÷ 13,333 = 0.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Texas Instruments Inc. debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Equity (including Operating Lease Liability)

Texas Instruments Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 500  550  500  749  500 
Long-term debt, excluding current portion 7,241  6,248  5,303  4,319  3,577 
Total debt 7,741  6,798  5,803  5,068  4,077 
Current operating lease liabilities (included in Accrued expenses and other liabilities) 82  72  73  —  — 
Long-term operating lease liabilities 383  249  259  —  — 
Total debt (including operating lease liability) 8,206  7,119  6,135  5,068  4,077 
 
Stockholders’ equity 13,333  9,187  8,907  8,994  10,337 
Solvency Ratio
Debt to equity (including operating lease liability)1 0.62 0.77 0.69 0.56 0.39
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.10 0.10 0.26 0.99 2.28
Analog Devices Inc. 0.19 0.46 0.47 0.58 0.77
Applied Materials Inc. 0.47 0.54 0.65 0.78 0.57
Broadcom Inc. 1.61 1.75 1.32 0.66 0.87
First Solar Inc. 0.07 0.09 0.12 0.09 0.08
Intel Corp. 0.40 0.46 0.38 0.35 0.39
KLA Corp. 1.05 1.34 1.29 1.38 2.21
Lam Research Corp. 0.86 1.16 0.96 0.37 0.40
Micron Technology Inc. 0.17 0.19 0.16 0.14 0.60
NVIDIA Corp. 0.46 0.22 0.21 0.27 0.48
NXP Semiconductors N.V. 1.66 0.88 0.81 0.70 0.49
ON Semiconductor Corp. 0.71 1.03 1.13 0.87 1.06
Qualcomm Inc. 1.64 2.67 3.25 17.64 0.71
Debt to Equity (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment 0.54 0.64 0.59 0.51 0.56
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.83 0.93 0.87 0.80 0.78

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 8,206 ÷ 13,333 = 0.62

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Texas Instruments Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Capital

Texas Instruments Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 500  550  500  749  500 
Long-term debt, excluding current portion 7,241  6,248  5,303  4,319  3,577 
Total debt 7,741  6,798  5,803  5,068  4,077 
Stockholders’ equity 13,333  9,187  8,907  8,994  10,337 
Total capital 21,074  15,985  14,710  14,062  14,414 
Solvency Ratio
Debt to capital1 0.37 0.43 0.39 0.36 0.28
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc. 0.04 0.05 0.15 0.50 0.70
Analog Devices Inc. 0.15 0.30 0.32 0.37 0.44
Applied Materials Inc. 0.31 0.34 0.39 0.44 0.36
Broadcom Inc. 0.61 0.63 0.57 0.40 0.46
First Solar Inc. 0.04 0.05 0.08 0.08 0.07
Intel Corp. 0.29 0.31 0.27 0.26 0.28
KLA Corp. 0.50 0.57 0.56 0.58 0.69
Lam Research Corp. 0.45 0.53 0.49 0.27 0.28
Micron Technology Inc. 0.13 0.15 0.14 0.13 0.37
NVIDIA Corp. 0.29 0.14 0.18 0.21 0.33
NXP Semiconductors N.V. 0.62 0.46 0.44 0.41 0.33
ON Semiconductor Corp. 0.40 0.50 0.52 0.47 0.52
Qualcomm Inc. 0.61 0.72 0.76 0.95 0.42
Debt to Capital, Sector
Semiconductors & Semiconductor Equipment 0.34 0.38 0.37 0.34 0.36
Debt to Capital, Industry
Information Technology 0.43 0.46 0.46 0.44 0.44

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,741 ÷ 21,074 = 0.37

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Texas Instruments Inc. debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Capital (including Operating Lease Liability)

Texas Instruments Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 500  550  500  749  500 
Long-term debt, excluding current portion 7,241  6,248  5,303  4,319  3,577 
Total debt 7,741  6,798  5,803  5,068  4,077 
Current operating lease liabilities (included in Accrued expenses and other liabilities) 82  72  73  —  — 
Long-term operating lease liabilities 383  249  259  —  — 
Total debt (including operating lease liability) 8,206  7,119  6,135  5,068  4,077 
Stockholders’ equity 13,333  9,187  8,907  8,994  10,337 
Total capital (including operating lease liability) 21,539  16,306  15,042  14,062  14,414 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.38 0.44 0.41 0.36 0.28
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.09 0.09 0.20 0.50 0.70
Analog Devices Inc. 0.16 0.31 0.32 0.37 0.44
Applied Materials Inc. 0.32 0.35 0.39 0.44 0.36
Broadcom Inc. 0.62 0.64 0.57 0.40 0.46
First Solar Inc. 0.06 0.08 0.10 0.08 0.07
Intel Corp. 0.29 0.31 0.28 0.26 0.28
KLA Corp. 0.51 0.57 0.56 0.58 0.69
Lam Research Corp. 0.46 0.54 0.49 0.27 0.28
Micron Technology Inc. 0.14 0.16 0.14 0.13 0.37
NVIDIA Corp. 0.31 0.18 0.18 0.21 0.33
NXP Semiconductors N.V. 0.62 0.47 0.45 0.41 0.33
ON Semiconductor Corp. 0.42 0.51 0.53 0.47 0.52
Qualcomm Inc. 0.62 0.73 0.76 0.95 0.42
Debt to Capital (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment 0.35 0.39 0.37 0.34 0.36
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.45 0.48 0.47 0.45 0.44

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 8,206 ÷ 21,539 = 0.38

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Texas Instruments Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Assets

Texas Instruments Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 500  550  500  749  500 
Long-term debt, excluding current portion 7,241  6,248  5,303  4,319  3,577 
Total debt 7,741  6,798  5,803  5,068  4,077 
 
Total assets 24,676  19,351  18,018  17,137  17,642 
Solvency Ratio
Debt to assets1 0.31 0.35 0.32 0.30 0.23
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc. 0.03 0.04 0.08 0.27 0.39
Analog Devices Inc. 0.13 0.24 0.26 0.31 0.37
Applied Materials Inc. 0.21 0.24 0.28 0.30 0.27
Broadcom Inc. 0.53 0.54 0.49 0.35 0.32
First Solar Inc. 0.03 0.04 0.06 0.07 0.06
Intel Corp. 0.23 0.24 0.21 0.21 0.22
KLA Corp. 0.34 0.37 0.38 0.40 0.53
Lam Research Corp. 0.31 0.40 0.37 0.19 0.22
Micron Technology Inc. 0.12 0.12 0.12 0.11 0.32
NVIDIA Corp. 0.24 0.11 0.15 0.18 0.28
NXP Semiconductors N.V. 0.51 0.38 0.37 0.34 0.27
ON Semiconductor Corp. 0.32 0.40 0.43 0.36 0.41
Qualcomm Inc. 0.38 0.44 0.48 0.50 0.33
Debt to Assets, Sector
Semiconductors & Semiconductor Equipment 0.27 0.30 0.29 0.26 0.28
Debt to Assets, Industry
Information Technology 0.28 0.30 0.30 0.29 0.30

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,741 ÷ 24,676 = 0.31

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Texas Instruments Inc. debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Debt to Assets (including Operating Lease Liability)

Texas Instruments Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current portion of long-term debt 500  550  500  749  500 
Long-term debt, excluding current portion 7,241  6,248  5,303  4,319  3,577 
Total debt 7,741  6,798  5,803  5,068  4,077 
Current operating lease liabilities (included in Accrued expenses and other liabilities) 82  72  73  —  — 
Long-term operating lease liabilities 383  249  259  —  — 
Total debt (including operating lease liability) 8,206  7,119  6,135  5,068  4,077 
 
Total assets 24,676  19,351  18,018  17,137  17,642 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.33 0.37 0.34 0.30 0.23
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.06 0.06 0.12 0.27 0.39
Analog Devices Inc. 0.14 0.25 0.26 0.31 0.37
Applied Materials Inc. 0.22 0.26 0.28 0.30 0.27
Broadcom Inc. 0.53 0.55 0.49 0.35 0.32
First Solar Inc. 0.05 0.07 0.08 0.07 0.06
Intel Corp. 0.23 0.24 0.22 0.21 0.22
KLA Corp. 0.35 0.38 0.38 0.40 0.53
Lam Research Corp. 0.33 0.41 0.37 0.19 0.22
Micron Technology Inc. 0.12 0.13 0.12 0.11 0.32
NVIDIA Corp. 0.27 0.15 0.15 0.18 0.28
NXP Semiconductors N.V. 0.52 0.40 0.38 0.34 0.27
ON Semiconductor Corp. 0.34 0.42 0.44 0.36 0.41
Qualcomm Inc. 0.40 0.46 0.48 0.50 0.33
Debt to Assets (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment 0.28 0.31 0.29 0.26 0.28
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.30 0.32 0.31 0.29 0.30

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 8,206 ÷ 24,676 = 0.33

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Texas Instruments Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Financial Leverage

Texas Instruments Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Total assets 24,676  19,351  18,018  17,137  17,642 
Stockholders’ equity 13,333  9,187  8,907  8,994  10,337 
Solvency Ratio
Financial leverage1 1.85 2.11 2.02 1.91 1.71
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc. 1.66 1.54 2.13 3.60 5.79
Analog Devices Inc. 1.38 1.79 1.83 1.86 2.08
Applied Materials Inc. 2.11 2.11 2.32 2.60 2.08
Broadcom Inc. 3.03 3.18 2.71 1.88 2.68
First Solar Inc. 1.24 1.29 1.47 1.37 1.35
Intel Corp. 1.77 1.89 1.76 1.72 1.79
KLA Corp. 3.04 3.48 3.39 3.47 4.17
Lam Research Corp. 2.64 2.81 2.57 1.92 1.78
Micron Technology Inc. 1.34 1.38 1.36 1.34 1.90
NVIDIA Corp. 1.70 1.42 1.42 1.50 1.71
NXP Semiconductors N.V. 3.20 2.22 2.12 2.05 1.78
ON Semiconductor Corp. 2.10 2.45 2.55 2.39 2.59
Qualcomm Inc. 4.14 5.86 6.71 35.22 2.13
Financial Leverage, Sector
Semiconductors & Semiconductor Equipment 1.91 2.07 2.01 1.93 1.99
Financial Leverage, Industry
Information Technology 2.74 2.90 2.84 2.73 2.55

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 24,676 ÷ 13,333 = 1.85

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Texas Instruments Inc. financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Interest Coverage

Texas Instruments Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 7,769  5,595  5,017  5,580  3,682 
Add: Income tax expense 1,150  422  711  1,106  2,398 
Add: Interest and debt expense 184  190  170  125  78 
Earnings before interest and tax (EBIT) 9,103  6,207  5,898  6,811  6,158 
Solvency Ratio
Interest coverage1 49.47 32.67 34.69 54.49 78.95
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc. 109.09 28.23 4.96 3.71 1.49
Analog Devices Inc. 8.19 7.79 7.49 7.46 4.30
Applied Materials Inc. 29.69 18.36 14.79 21.06 19.84
Broadcom Inc. 4.59 2.37 2.54 8.24 5.02
First Solar Inc. 44.65 13.11 -3.45 6.70 9.01
Intel Corp. 37.35 40.87 50.20 50.82 32.50
KLA Corp. 16.00 9.22 11.40 13.73 10.58
Lam Research Corp. 21.95 15.51 21.86 33.36 16.39
Micron Technology Inc. 35.18 16.41 56.09 42.83 9.66
NVIDIA Corp. 24.96 58.12 68.17 53.39 33.84
NXP Semiconductors N.V. 6.90 0.99 1.79 9.92 6.77
ON Semiconductor Corp. 9.88 2.05 2.87 6.89 4.88
Qualcomm Inc. 19.38 10.50 12.93 1.67 7.11
Interest Coverage, Sector
Semiconductors & Semiconductor Equipment 17.39 12.70 15.02 19.46 14.40
Interest Coverage, Industry
Information Technology 22.94 16.90 16.33 18.06 17.04

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 9,103 ÷ 184 = 49.47

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Texas Instruments Inc. interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Fixed Charge Coverage

Texas Instruments Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income 7,769  5,595  5,017  5,580  3,682 
Add: Income tax expense 1,150  422  711  1,106  2,398 
Add: Interest and debt expense 184  190  170  125  78 
Earnings before interest and tax (EBIT) 9,103  6,207  5,898  6,811  6,158 
Add: Operating lease cost 125  106  107  79  81 
Earnings before fixed charges and tax 9,228  6,313  6,005  6,890  6,239 
 
Interest and debt expense 184  190  170  125  78 
Operating lease cost 125  106  107  79  81 
Fixed charges 309  296  277  204  159 
Solvency Ratio
Fixed charge coverage1 29.86 21.33 21.68 33.77 39.24
Benchmarks
Fixed Charge Coverage, Competitors2
Advanced Micro Devices Inc. 36.00 13.08 3.48 2.89 1.36
Analog Devices Inc. 6.64 6.48 5.62 5.84 3.68
Applied Materials Inc. 22.50 14.48 12.35 17.53 17.08
Broadcom Inc. 3.70 1.92 2.27 6.28 3.58
First Solar Inc. 19.58 7.80 -1.46 4.30 5.31
Intel Corp. 16.56 25.00 36.69 34.36 23.36
KLA Corp. 13.03 7.74 10.39 12.67 9.88
Lam Research Corp. 17.80 12.52 17.83 27.07 14.13
Micron Technology Inc. 22.49 11.10 32.90 36.32 8.97
NVIDIA Corp. 14.40 18.89 29.23 28.79 19.32
NXP Semiconductors N.V. 6.01 0.99 1.68 8.38 5.80
ON Semiconductor Corp. 7.58 1.82 2.46 5.39 3.94
Qualcomm Inc. 14.48 8.30 10.68 1.55 5.85
Fixed Charge Coverage, Sector
Semiconductors & Semiconductor Equipment 12.15 9.47 11.82 14.99 11.23
Fixed Charge Coverage, Industry
Information Technology 13.86 10.56 10.88 11.82 11.02

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 9,228 ÷ 309 = 29.86

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Texas Instruments Inc. fixed charge coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.