Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

Texas Instruments Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 3.12 2.66 2.61 2.48 2.73
Receivables turnover 10.78 10.23 13.39 13.08 11.71
Payables turnover 9.14 12.51 13.45 11.52 11.47
Working capital turnover 1.65 1.84 2.17 2.81 2.31
Average No. Days
Average inventory processing period 117 137 140 147 134
Add: Average receivable collection period 34 36 27 28 31
Operating cycle 151 173 167 175 165
Less: Average payables payment period 40 29 27 32 32
Cash conversion cycle 111 144 140 143 133

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Texas Instruments Inc. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Texas Instruments Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Texas Instruments Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Texas Instruments Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Texas Instruments Inc. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Texas Instruments Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Texas Instruments Inc. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Texas Instruments Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Texas Instruments Inc. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Inventory Turnover

Texas Instruments Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of revenue (COR) 5,968  5,192  5,219  5,507  5,347 
Inventories 1,910  1,955  2,001  2,217  1,957 
Short-term Activity Ratio
Inventory turnover1 3.12 2.66 2.61 2.48 2.73
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 4.35 3.87 3.93 4.77 4.74
Analog Devices Inc. 2.33 3.14 3.24 3.35 3.71
Applied Materials Inc. 2.82 2.44 2.37 2.54 2.73
Broadcom Inc. 8.18 10.34 11.57 9.00 6.31
Intel Corp. 3.27 4.06 3.41 3.74 3.39
Lam Research Corp. 2.91 2.86 3.44 3.15 3.58
Micron Technology Inc. 3.85 2.65 2.48 3.48 3.81
NVIDIA Corp. 3.44 4.24 2.89 4.89 3.59
Qualcomm Inc. 4.42 3.56 6.14 6.05 4.81
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment 3.59 3.54 3.43 3.83 3.70
Inventory Turnover, Industry
Information Technology 12.02 12.84 12.97 13.26 12.54

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
Inventory turnover = Cost of revenue (COR) ÷ Inventories
= 5,968 ÷ 1,910 = 3.12

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Texas Instruments Inc. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

Texas Instruments Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Revenue 18,344  14,461  14,383  15,784  14,961 
Accounts receivable, net of allowances 1,701  1,414  1,074  1,207  1,278 
Short-term Activity Ratio
Receivables turnover1 10.78 10.23 13.39 13.08 11.71
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 6.07 4.73 3.62 5.24 13.32
Analog Devices Inc. 5.02 7.60 9.43 9.69 7.41
Applied Materials Inc. 4.66 5.81 5.77 6.73 6.22
Broadcom Inc. 13.25 10.40 6.93 6.27 7.20
Intel Corp. 8.36 11.48 9.40 10.54 11.19
Lam Research Corp. 4.83 4.79 6.63 5.09 4.79
Micron Technology Inc. 5.63 6.13 8.43 6.01 5.82
NVIDIA Corp. 6.86 6.59 8.23 7.68 8.37
Qualcomm Inc. 15.16 8.76 23.21 7.98 6.23
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.56 8.20 8.66 7.82 7.97
Receivables Turnover, Industry
Information Technology 7.89 8.40 7.73 7.99 8.38

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
Receivables turnover = Revenue ÷ Accounts receivable, net of allowances
= 18,344 ÷ 1,701 = 10.78

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Texas Instruments Inc. receivables turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Payables Turnover

Texas Instruments Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of revenue (COR) 5,968  5,192  5,219  5,507  5,347 
Accounts payable 653  415  388  478  466 
Short-term Activity Ratio
Payables turnover1 9.14 12.51 13.45 11.52 11.47
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 6.44 11.57 3.91 7.63 9.13
Analog Devices Inc. 6.30 8.42 8.78 7.54 8.65
Applied Materials Inc. 8.25 8.46 8.58 9.47 8.47
Broadcom Inc. 9.77 12.41 11.83 12.47 8.26
Intel Corp. 6.13 6.14 7.23 7.09 8.09
Lam Research Corp. 9.43 9.18 14.06 11.57 9.49
Micron Technology Inc. 9.91 6.79 7.58 7.39 8.92
NVIDIA Corp. 5.23 6.04 8.89 6.53 5.87
Qualcomm Inc. 5.19 4.12 6.29 5.61 4.97
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.01 6.99 7.87 7.87 7.82
Payables Turnover, Industry
Information Technology 5.22 5.53 5.27 4.91 4.96

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
Payables turnover = Cost of revenue (COR) ÷ Accounts payable
= 5,968 ÷ 653 = 9.14

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Texas Instruments Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.

Working Capital Turnover

Texas Instruments Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 13,685  10,239  8,761  8,097  8,734 
Less: Current liabilities 2,569  2,390  2,123  2,474  2,258 
Working capital 11,116  7,849  6,638  5,623  6,476 
 
Revenue 18,344  14,461  14,383  15,784  14,961 
Short-term Activity Ratio
Working capital turnover1 1.65 1.84 2.17 2.81 2.31
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 3.78 2.62 3.01 4.16 4.69
Analog Devices Inc. 2.81 4.86 12.57 8.78 6.76
Applied Materials Inc. 2.36 1.93 2.54 2.58 1.65
Broadcom Inc. 2.66 4.32 7.49 3.08 1.33
Intel Corp. 2.61 3.46 8.06 5.83 5.20
Lam Research Corp. 1.80 1.31 1.56 1.85 1.29
Micron Technology Inc. 2.05 1.89 2.31 2.95 2.85
NVIDIA Corp. 1.37 0.92 1.27 1.20 1.02
Qualcomm Inc. 4.13 2.39 3.10 3.70 0.68
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment 2.40 2.37 3.40 3.30 1.87
Working Capital Turnover, Industry
Information Technology 3.92 2.87 3.11 2.84 2.14

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
Working capital turnover = Revenue ÷ Working capital
= 18,344 ÷ 11,116 = 1.65

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Texas Instruments Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Inventory Processing Period

Texas Instruments Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 3.12 2.66 2.61 2.48 2.73
Short-term Activity Ratio (no. days)
Average inventory processing period1 117 137 140 147 134
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 84 94 93 77 77
Analog Devices Inc. 157 116 113 109 98
Applied Materials Inc. 129 150 154 144 134
Broadcom Inc. 45 35 32 41 58
Intel Corp. 112 90 107 98 108
Lam Research Corp. 126 128 106 116 102
Micron Technology Inc. 95 138 147 105 96
NVIDIA Corp. 106 86 126 75 102
Qualcomm Inc. 83 102 59 60 76
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment 102 103 106 95 99
Average Inventory Processing Period, Industry
Information Technology 30 28 28 28 29

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.12 = 117

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Texas Instruments Inc. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Texas Instruments Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 10.78 10.23 13.39 13.08 11.71
Short-term Activity Ratio (no. days)
Average receivable collection period1 34 36 27 28 31
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 60 77 101 70 27
Analog Devices Inc. 73 48 39 38 49
Applied Materials Inc. 78 63 63 54 59
Broadcom Inc. 28 35 53 58 51
Intel Corp. 44 32 39 35 33
Lam Research Corp. 76 76 55 72 76
Micron Technology Inc. 65 59 43 61 63
NVIDIA Corp. 53 55 44 48 44
Qualcomm Inc. 24 42 16 46 59
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment 48 45 42 47 46
Average Receivable Collection Period, Industry
Information Technology 46 43 47 46 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.78 = 34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Texas Instruments Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Operating Cycle

Texas Instruments Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 117 137 140 147 134
Average receivable collection period 34 36 27 28 31
Short-term Activity Ratio
Operating cycle1 151 173 167 175 165
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 144 171 194 147 104
Analog Devices Inc. 230 164 152 147 147
Applied Materials Inc. 207 213 217 198 193
Broadcom Inc. 73 70 85 99 109
Intel Corp. 156 122 146 133 141
Lam Research Corp. 202 204 161 188 178
Micron Technology Inc. 160 197 190 166 159
NVIDIA Corp. 159 141 170 123 146
Qualcomm Inc. 107 144 75 106 135
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment 150 148 148 142 145
Operating Cycle, Industry
Information Technology 76 71 75 74 73

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 117 + 34 = 151

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Texas Instruments Inc. operating cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Average Payables Payment Period

Texas Instruments Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 9.14 12.51 13.45 11.52 11.47
Short-term Activity Ratio (no. days)
Average payables payment period1 40 29 27 32 32
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 57 32 93 48 40
Analog Devices Inc. 58 43 42 48 42
Applied Materials Inc. 44 43 43 39 43
Broadcom Inc. 37 29 31 29 44
Intel Corp. 60 59 51 51 45
Lam Research Corp. 39 40 26 32 38
Micron Technology Inc. 37 54 48 49 41
NVIDIA Corp. 70 60 41 56 62
Qualcomm Inc. 70 89 58 65 73
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment 52 52 46 46 47
Average Payables Payment Period, Industry
Information Technology 70 66 69 74 74

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.14 = 40

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Texas Instruments Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.

Cash Conversion Cycle

Texas Instruments Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 117 137 140 147 134
Average receivable collection period 34 36 27 28 31
Average payables payment period 40 29 27 32 32
Short-term Activity Ratio
Cash conversion cycle1 111 144 140 143 133
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 87 139 101 99 64
Analog Devices Inc. 172 121 110 99 105
Applied Materials Inc. 163 170 174 159 150
Broadcom Inc. 36 41 54 70 65
Intel Corp. 96 63 95 82 96
Lam Research Corp. 163 164 135 156 140
Micron Technology Inc. 123 143 142 117 118
NVIDIA Corp. 89 81 129 67 84
Qualcomm Inc. 37 55 17 41 62
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment 98 96 102 96 98
Cash Conversion Cycle, Industry
Information Technology 6 5 6 0 -1

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 117 + 3440 = 111

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Texas Instruments Inc. cash conversion cycle deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.