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, 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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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

	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.

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