Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

Texas Instruments Inc., solvency ratios

Microsoft Excel LibreOffice Calc
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.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
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.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
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.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
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.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
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.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
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.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
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.

Financial Leverage

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

Microsoft Excel LibreOffice Calc
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.

Interest Coverage

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

Microsoft Excel LibreOffice Calc
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.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
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.