Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Texas Instruments Inc., solvency ratios

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Debt Ratios
Debt to equity	0.74	0.65	0.56	0.39	0.34
Debt to equity (including operating lease liability)	0.77	0.69	0.56	0.39	0.34
Debt to capital	0.43	0.39	0.36	0.28	0.26
Debt to capital (including operating lease liability)	0.44	0.41	0.36	0.28	0.26
Debt to assets	0.35	0.32	0.30	0.23	0.22
Debt to assets (including operating lease liability)	0.37	0.34	0.30	0.23	0.22
Financial leverage	2.11	2.02	1.91	1.71	1.57
Coverage Ratios
Interest coverage	32.67	34.69	54.49	78.95	62.63
Fixed charge coverage	21.33	21.68	33.77	39.24	30.70

Based on: 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), 10-K (reporting date: 2016-12-31).

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 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Texas Instruments Inc. debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Texas Instruments Inc. financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

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 2018 to 2019 and from 2019 to 2020.
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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt	550	500	749	500	631
Long-term debt, excluding current portion	6,248	5,303	4,319	3,577	2,978
Total debt	6,798	5,803	5,068	4,077	3,609

Stockholders’ equity	9,187	8,907	8,994	10,337	10,473
Solvency Ratio
Debt to equity¹	0.74	0.65	0.56	0.39	0.34
Benchmarks
Debt to Equity, Competitors²
Advanced Micro Devices Inc.	0.06	0.17	0.99	2.28	3.45
Applied Materials Inc.	0.52	0.65	0.78	0.57	0.46
Broadcom Inc.	1.72	1.32	0.66	0.87	0.72
Intel Corp.	0.45	0.37	0.35	0.39	0.38
Lam Research Corp.	1.12	0.96	0.37	0.40	0.74
Micron Technology Inc.	0.17	0.16	0.14	0.60	0.82
NVIDIA Corp.	0.16	0.21	0.27	0.48	0.32
Qualcomm Inc.	2.59	3.25	17.64	0.71	0.37
Debt to Equity, Sector
Semiconductors & Semiconductor Equipment	0.62	0.57	0.49	0.55	0.47
Debt to Equity, Industry
Information Technology	0.83	0.81	0.81	0.79	0.65

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 6,798 ÷ 9,187 = 0.74

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt	550	500	749	500	631
Long-term debt, excluding current portion	6,248	5,303	4,319	3,577	2,978
Total debt	6,798	5,803	5,068	4,077	3,609
Current operating lease liabilities (included in Accrued expenses and other liabilities)	72	73	—	—	—
Long-term operating lease liabilities	249	259	—	—	—
Total debt (including operating lease liability)	7,119	6,135	5,068	4,077	3,609

Stockholders’ equity	9,187	8,907	8,994	10,337	10,473
Solvency Ratio
Debt to equity (including operating lease liability)¹	0.77	0.69	0.56	0.39	0.34
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors²
Advanced Micro Devices Inc.	0.10	0.26	0.99	2.28	3.45
Applied Materials Inc.	0.54	0.65	0.78	0.57	0.46
Broadcom Inc.	1.75	1.32	0.66	0.87	0.72
Intel Corp.	0.46	0.38	0.35	0.39	0.38
Lam Research Corp.	1.16	0.96	0.37	0.40	0.74
Micron Technology Inc.	0.19	0.16	0.14	0.60	0.82
NVIDIA Corp.	0.22	0.21	0.27	0.48	0.32
Qualcomm Inc.	2.67	3.25	17.64	0.71	0.37
Debt to Equity (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment	0.64	0.58	0.49	0.55	0.47
Debt to Equity (including Operating Lease Liability), Industry
Information Technology	0.90	0.84	0.83	0.79	0.65

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 7,119 ÷ 9,187 = 0.77

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt	550	500	749	500	631
Long-term debt, excluding current portion	6,248	5,303	4,319	3,577	2,978
Total debt	6,798	5,803	5,068	4,077	3,609
Stockholders’ equity	9,187	8,907	8,994	10,337	10,473
Total capital	15,985	14,710	14,062	14,414	14,082
Solvency Ratio
Debt to capital¹	0.43	0.39	0.36	0.28	0.26
Benchmarks
Debt to Capital, Competitors²
Advanced Micro Devices Inc.	0.05	0.15	0.50	0.70	0.78
Applied Materials Inc.	0.34	0.39	0.44	0.36	0.32
Broadcom Inc.	0.63	0.57	0.40	0.46	0.42
Intel Corp.	0.31	0.27	0.26	0.28	0.28
Lam Research Corp.	0.53	0.49	0.27	0.28	0.42
Micron Technology Inc.	0.15	0.14	0.13	0.37	0.45
NVIDIA Corp.	0.14	0.18	0.21	0.33	0.24
Qualcomm Inc.	0.72	0.76	0.95	0.42	0.27
Debt to Capital, Sector
Semiconductors & Semiconductor Equipment	0.38	0.36	0.33	0.35	0.32
Debt to Capital, Industry
Information Technology	0.45	0.45	0.45	0.44	0.39

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,798 ÷ 15,985 = 0.43

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt	550	500	749	500	631
Long-term debt, excluding current portion	6,248	5,303	4,319	3,577	2,978
Total debt	6,798	5,803	5,068	4,077	3,609
Current operating lease liabilities (included in Accrued expenses and other liabilities)	72	73	—	—	—
Long-term operating lease liabilities	249	259	—	—	—
Total debt (including operating lease liability)	7,119	6,135	5,068	4,077	3,609
Stockholders’ equity	9,187	8,907	8,994	10,337	10,473
Total capital (including operating lease liability)	16,306	15,042	14,062	14,414	14,082
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.44	0.41	0.36	0.28	0.26
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors²
Advanced Micro Devices Inc.	0.09	0.20	0.50	0.70	0.78
Applied Materials Inc.	0.35	0.39	0.44	0.36	0.32
Broadcom Inc.	0.64	0.57	0.40	0.46	0.42
Intel Corp.	0.31	0.28	0.26	0.28	0.28
Lam Research Corp.	0.54	0.49	0.27	0.28	0.42
Micron Technology Inc.	0.16	0.14	0.13	0.37	0.45
NVIDIA Corp.	0.18	0.18	0.21	0.33	0.24
Qualcomm Inc.	0.73	0.76	0.95	0.42	0.27
Debt to Capital (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment	0.39	0.37	0.33	0.35	0.32
Debt to Capital (including Operating Lease Liability), Industry
Information Technology	0.47	0.46	0.45	0.44	0.39

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 7,119 ÷ 16,306 = 0.44

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt	550	500	749	500	631
Long-term debt, excluding current portion	6,248	5,303	4,319	3,577	2,978
Total debt	6,798	5,803	5,068	4,077	3,609

Total assets	19,351	18,018	17,137	17,642	16,431
Solvency Ratio
Debt to assets¹	0.35	0.32	0.30	0.23	0.22
Benchmarks
Debt to Assets, Competitors²
Advanced Micro Devices Inc.	0.04	0.08	0.27	0.39	0.43
Applied Materials Inc.	0.24	0.28	0.30	0.27	0.23
Broadcom Inc.	0.54	0.49	0.35	0.32	0.27
Intel Corp.	0.24	0.21	0.21	0.22	0.22
Lam Research Corp.	0.40	0.37	0.19	0.22	0.35
Micron Technology Inc.	0.12	0.12	0.11	0.32	0.36
NVIDIA Corp.	0.11	0.15	0.18	0.28	0.19
Qualcomm Inc.	0.44	0.48	0.50	0.33	0.22
Debt to Assets, Sector
Semiconductors & Semiconductor Equipment	0.30	0.29	0.25	0.27	0.25
Debt to Assets, Industry
Information Technology	0.29	0.29	0.29	0.30	0.27

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,798 ÷ 19,351 = 0.35

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Current portion of long-term debt	550	500	749	500	631
Long-term debt, excluding current portion	6,248	5,303	4,319	3,577	2,978
Total debt	6,798	5,803	5,068	4,077	3,609
Current operating lease liabilities (included in Accrued expenses and other liabilities)	72	73	—	—	—
Long-term operating lease liabilities	249	259	—	—	—
Total debt (including operating lease liability)	7,119	6,135	5,068	4,077	3,609

Total assets	19,351	18,018	17,137	17,642	16,431
Solvency Ratio
Debt to assets (including operating lease liability)¹	0.37	0.34	0.30	0.23	0.22
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors²
Advanced Micro Devices Inc.	0.06	0.12	0.27	0.39	0.43
Applied Materials Inc.	0.26	0.28	0.30	0.27	0.23
Broadcom Inc.	0.55	0.49	0.35	0.32	0.27
Intel Corp.	0.24	0.22	0.21	0.22	0.22
Lam Research Corp.	0.41	0.37	0.19	0.22	0.35
Micron Technology Inc.	0.13	0.12	0.11	0.32	0.36
NVIDIA Corp.	0.15	0.15	0.18	0.28	0.19
Qualcomm Inc.	0.46	0.48	0.50	0.33	0.22
Debt to Assets (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment	0.31	0.29	0.25	0.27	0.25
Debt to Assets (including Operating Lease Liability), Industry
Information Technology	0.31	0.30	0.29	0.30	0.27

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 7,119 ÷ 19,351 = 0.37

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Total assets	19,351	18,018	17,137	17,642	16,431
Stockholders’ equity	9,187	8,907	8,994	10,337	10,473
Solvency Ratio
Financial leverage¹	2.11	2.02	1.91	1.71	1.57
Benchmarks
Financial Leverage, Competitors²
Advanced Micro Devices Inc.	1.54	2.13	3.60	5.79	7.98
Applied Materials Inc.	2.11	2.32	2.60	2.08	2.02
Broadcom Inc.	3.18	2.71	1.88	2.68	2.64
Intel Corp.	1.89	1.76	1.72	1.79	1.71
Lam Research Corp.	2.81	2.57	1.92	1.78	2.08
Micron Technology Inc.	1.38	1.36	1.34	1.90	2.28
NVIDIA Corp.	1.42	1.42	1.50	1.71	1.65
Qualcomm Inc.	5.86	6.71	35.22	2.13	1.65
Financial Leverage, Sector
Semiconductors & Semiconductor Equipment	2.08	2.00	1.92	1.99	1.89
Financial Leverage, Industry
Information Technology	2.87	2.81	2.83	2.63	2.44

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 19,351 ÷ 9,187 = 2.11

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income	5,595	5,017	5,580	3,682	3,595
Add: Income tax expense	422	711	1,106	2,398	1,335
Add: Interest and debt expense	190	170	125	78	80
Earnings before interest and tax (EBIT)	6,207	5,898	6,811	6,158	5,010
Solvency Ratio
Interest coverage¹	32.67	34.69	54.49	78.95	62.63
Benchmarks
Interest Coverage, Competitors²
Advanced Micro Devices Inc.	28.23	4.96	3.71	1.49	-1.94
Applied Materials Inc.	18.36	14.79	21.06	19.84	13.99
Broadcom Inc.	2.37	2.54	8.24	5.02	-0.89
Intel Corp.	40.87	50.20	50.82	32.50	18.65
Lam Research Corp.	15.51	21.86	33.36	16.39	8.12
Micron Technology Inc.	16.41	56.09	42.83	9.66	0.41
NVIDIA Corp.	58.12	68.17	53.39	33.84	16.81
Qualcomm Inc.	10.50	12.93	1.67	7.11	24.01
Interest Coverage, Sector
Semiconductors & Semiconductor Equipment	14.62	17.80	22.35	16.87	11.13
Interest Coverage, Industry
Information Technology	16.72	16.24	18.10	17.31	19.12

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,207 ÷ 190 = 32.67

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 2018 to 2019 and from 2019 to 2020.

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

	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income	5,595	5,017	5,580	3,682	3,595
Add: Income tax expense	422	711	1,106	2,398	1,335
Add: Interest and debt expense	190	170	125	78	80
Earnings before interest and tax (EBIT)	6,207	5,898	6,811	6,158	5,010
Add: Operating lease cost	106	107	79	81	86
Earnings before fixed charges and tax	6,313	6,005	6,890	6,239	5,096

Interest and debt expense	190	170	125	78	80
Operating lease cost	106	107	79	81	86
Fixed charges	296	277	204	159	166
Solvency Ratio
Fixed charge coverage¹	21.33	21.68	33.77	39.24	30.70
Benchmarks
Fixed Charge Coverage, Competitors²
Advanced Micro Devices Inc.	13.08	3.48	2.89	1.36	-1.35
Applied Materials Inc.	14.48	12.35	17.53	17.08	11.43
Broadcom Inc.	1.92	2.27	6.28	3.58	-0.36
Intel Corp.	25.00	36.69	34.36	23.36	13.74
Lam Research Corp.	12.52	17.83	27.07	14.13	7.36
Micron Technology Inc.	11.10	32.90	36.32	8.97	0.47
NVIDIA Corp.	18.89	29.23	28.79	19.32	9.08
Qualcomm Inc.	8.30	10.68	1.55	5.85	17.54
Fixed Charge Coverage, Sector
Semiconductors & Semiconductor Equipment	10.64	13.86	17.02	12.90	8.55
Fixed Charge Coverage, Industry
Information Technology	10.36	10.69	11.65	10.94	11.53

Based on: 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), 10-K (reporting date: 2016-12-31).

¹ 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,313 ÷ 296 = 21.33

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 2018 to 2019 and from 2019 to 2020.

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Solvency Ratios

Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage