Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Turnover Ratios
Inventory turnover 2.66 2.61 2.48 2.73 2.87
Receivables turnover 10.23 13.39 13.08 11.71 10.55
Payables turnover 12.51 13.45 11.52 11.47 12.95
Working capital turnover 1.84 2.17 2.81 2.31 2.57
Average No. Days
Average inventory processing period 137 140 147 134 127
Add: Average receivable collection period 36 27 28 31 35
Operating cycle 173 167 175 165 162
Less: Average payables payment period 29 27 32 32 28
Cash conversion cycle 144 140 143 133 134

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Texas Instruments Inc.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Receivables turnover An activity ratio equal to revenue divided by receivables. Texas Instruments Inc.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Texas Instruments Inc.’s payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Texas Instruments Inc.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

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.’s number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Texas Instruments Inc.’s number of days of receivables outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Texas Instruments Inc.’s operating cycle improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 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.’s number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
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.’s cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Inventory Turnover

Texas Instruments Inc., inventory turnover 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)
Cost of revenue (COR) 5,192  5,219  5,507  5,347  5,130 
Inventories 1,955  2,001  2,217  1,957  1,790 
Short-term Activity Ratio
Inventory turnover1 2.66 2.61 2.48 2.73 2.87
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 3.87 3.93 4.77 4.74 4.36
Analog Devices Inc. 3.14 3.24 3.35 3.71 3.17
Apple Inc. 41.75 39.40 41.39 29.05 61.62
Applied Materials Inc. 2.44 2.37 2.54 2.73 3.08
Broadcom Inc. 10.34 11.57 9.00 6.31 5.21
Cisco Systems Inc. 13.74 13.91 10.14 11.00 15.03
Intel Corp. 4.06 3.41 3.74 3.39 4.18
Lam Research Corp. 2.86 3.44 3.15 3.58 3.36
Micron Technology Inc. 2.65 2.48 3.48 3.81 3.42
NVIDIA Corp. 4.24 2.89 4.89 3.59 5.26
Qualcomm Inc. 3.56 6.14 6.05 4.81 6.27
Inventory Turnover, Sector
Technology Hardware & Equipment 8.53 8.53 9.26 8.47 10.48
Inventory Turnover, Industry
Technology 12.75 12.36 12.36 11.49 13.63

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Inventory turnover = Cost of revenue (COR) ÷ Inventories
= 5,192 ÷ 1,955 = 2.66

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.’s inventory turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Receivables Turnover

Texas Instruments Inc., receivables turnover 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)
Revenue 14,461  14,383  15,784  14,961  13,370 
Accounts receivable, net of allowances 1,414  1,074  1,207  1,278  1,267 
Short-term Activity Ratio
Receivables turnover1 10.23 13.39 13.08 11.71 10.55
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 4.73 3.62 5.24 13.32 13.74
Analog Devices Inc. 7.60 9.43 9.69 7.41 7.16
Apple Inc. 17.03 11.35 11.45 12.82 13.69
Applied Materials Inc. 5.81 5.77 6.73 6.22 4.75
Broadcom Inc. 10.40 6.93 6.27 7.20 6.07
Cisco Systems Inc. 9.01 9.45 8.88 9.33 8.42
Intel Corp. 11.48 9.40 10.54 11.19 12.66
Lam Research Corp. 4.79 6.63 5.09 4.79 4.66
Micron Technology Inc. 6.13 8.43 6.01 5.82 7.02
NVIDIA Corp. 6.59 8.23 7.68 8.37 9.92
Qualcomm Inc. 8.76 23.21 7.98 6.23 10.74
Receivables Turnover, Sector
Technology Hardware & Equipment 11.27 9.92 9.43 10.04 10.80
Receivables Turnover, Industry
Technology 7.69 7.50 7.54 7.69 8.07

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net of allowances
= 14,461 ÷ 1,414 = 10.23

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.’s receivables turnover ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Payables Turnover

Texas Instruments Inc., payables turnover 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)
Cost of revenue (COR) 5,192  5,219  5,507  5,347  5,130 
Accounts payable 415  388  478  466  396 
Short-term Activity Ratio
Payables turnover1 12.51 13.45 11.52 11.47 12.95
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 11.57 3.91 7.63 9.13 7.44
Analog Devices Inc. 8.42 8.78 7.54 8.65 6.97
Apple Inc. 4.01 3.50 2.93 2.88 3.52
Applied Materials Inc. 8.46 8.58 9.47 8.47 7.77
Broadcom Inc. 12.41 11.83 12.47 8.26 5.79
Cisco Systems Inc. 7.94 9.34 9.83 12.84 17.32
Intel Corp. 6.14 7.23 7.09 8.09 9.37
Lam Research Corp. 9.18 14.06 11.57 9.49 9.38
Micron Technology Inc. 6.79 7.58 7.39 8.92 8.34
NVIDIA Corp. 6.04 8.89 6.53 5.87 7.43
Qualcomm Inc. 4.12 6.29 5.61 4.97 5.25
Payables Turnover, Sector
Technology Hardware & Equipment 4.88 4.54 3.94 3.94 4.65
Payables Turnover, Industry
Technology 5.79 5.54 4.82 4.80 5.41

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Payables turnover = Cost of revenue (COR) ÷ Accounts payable
= 5,192 ÷ 415 = 12.51

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.’s payables turnover ratio increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Working Capital Turnover

Texas Instruments Inc., working capital turnover 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 assets 10,239  8,761  8,097  8,734  7,457 
Less: Current liabilities 2,390  2,123  2,474  2,258  2,264 
Working capital 7,849  6,638  5,623  6,476  5,193 
 
Revenue 14,461  14,383  15,784  14,961  13,370 
Short-term Activity Ratio
Working capital turnover1 1.84 2.17 2.81 2.31 2.57
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 2.62 3.01 4.16 4.69 3.61
Analog Devices Inc. 4.86 12.57 8.78 6.76 0.82
Apple Inc. 7.16 4.56 18.35 8.24 7.74
Applied Materials Inc. 1.93 2.54 2.58 1.65 2.29
Broadcom Inc. 4.32 7.49 3.08 1.33 3.27
Cisco Systems Inc. 2.70 3.24 1.42 0.86 0.92
Intel Corp. 3.46 8.06 5.83 5.20 3.91
Lam Research Corp. 1.31 1.56 1.85 1.29 0.87
Micron Technology Inc. 1.89 2.31 2.95 2.85 2.66
NVIDIA Corp. 0.92 1.27 1.20 1.02 1.35
Qualcomm Inc. 2.39 3.10 3.70 0.68 1.50
Working Capital Turnover, Sector
Technology Hardware & Equipment 3.66 3.87 4.64 2.54 2.83
Working Capital Turnover, Industry
Technology 2.32 2.42 2.24 1.73 1.87

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Working capital turnover = Revenue ÷ Working capital
= 14,461 ÷ 7,849 = 1.84

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.’s working capital turnover ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Average Inventory Processing Period

Texas Instruments Inc., average inventory processing period 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
Inventory turnover 2.66 2.61 2.48 2.73 2.87
Short-term Activity Ratio (no. days)
Average inventory processing period1 137 140 147 134 127
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 94 93 77 77 84
Analog Devices Inc. 116 113 109 98 115
Apple Inc. 9 9 9 13 6
Applied Materials Inc. 150 154 144 134 119
Broadcom Inc. 35 32 41 58 70
Cisco Systems Inc. 27 26 36 33 24
Intel Corp. 90 107 98 108 87
Lam Research Corp. 128 106 116 102 109
Micron Technology Inc. 138 147 105 96 107
NVIDIA Corp. 86 126 75 102 69
Qualcomm Inc. 102 59 60 76 58
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 43 43 39 43 35
Average Inventory Processing Period, Industry
Technology 29 30 30 32 27

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.66 = 137

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.’s number of days of inventory outstanding improved from 2018 to 2019 and from 2019 to 2020.

Average Receivable Collection Period

Texas Instruments Inc., average receivable collection period 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
Receivables turnover 10.23 13.39 13.08 11.71 10.55
Short-term Activity Ratio (no. days)
Average receivable collection period1 36 27 28 31 35
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 77 101 70 27 27
Analog Devices Inc. 48 39 38 49 51
Apple Inc. 21 32 32 28 27
Applied Materials Inc. 63 63 54 59 77
Broadcom Inc. 35 53 58 51 60
Cisco Systems Inc. 41 39 41 39 43
Intel Corp. 32 39 35 33 29
Lam Research Corp. 76 55 72 76 78
Micron Technology Inc. 59 43 61 63 52
NVIDIA Corp. 55 44 48 44 37
Qualcomm Inc. 42 16 46 59 34
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 32 37 39 36 34
Average Receivable Collection Period, Industry
Technology 47 49 48 47 45

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 10.23 = 36

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.’s number of days of receivables outstanding improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Operating Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 137 140 147 134 127
Average receivable collection period 36 27 28 31 35
Short-term Activity Ratio
Operating cycle1 173 167 175 165 162
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 171 194 147 104 111
Analog Devices Inc. 164 152 147 147 166
Apple Inc. 30 41 41 41 33
Applied Materials Inc. 213 217 198 193 196
Broadcom Inc. 70 85 99 109 130
Cisco Systems Inc. 68 65 77 72 67
Intel Corp. 122 146 133 141 116
Lam Research Corp. 204 161 188 178 187
Micron Technology Inc. 197 190 166 159 159
NVIDIA Corp. 141 170 123 146 106
Qualcomm Inc. 144 75 106 135 92
Operating Cycle, Sector
Technology Hardware & Equipment 75 80 78 79 69
Operating Cycle, Industry
Technology 76 79 78 79 72

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 137 + 36 = 173

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.’s operating cycle improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020 not reaching 2018 level.

Average Payables Payment Period

Texas Instruments Inc., average payables payment period 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
Payables turnover 12.51 13.45 11.52 11.47 12.95
Short-term Activity Ratio (no. days)
Average payables payment period1 29 27 32 32 28
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 32 93 48 40 49
Analog Devices Inc. 43 42 48 42 52
Apple Inc. 91 104 125 127 104
Applied Materials Inc. 43 43 39 43 47
Broadcom Inc. 29 31 29 44 63
Cisco Systems Inc. 46 39 37 28 21
Intel Corp. 59 51 51 45 39
Lam Research Corp. 40 26 32 38 39
Micron Technology Inc. 54 48 49 41 44
NVIDIA Corp. 60 41 56 62 49
Qualcomm Inc. 89 58 65 73 70
Average Payables Payment Period, Sector
Technology Hardware & Equipment 75 80 93 93 79
Average Payables Payment Period, Industry
Technology 63 66 76 76 67

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 12.51 = 29

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.’s number of days of payables outstanding decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Cash Conversion Cycle

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

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data
Average inventory processing period 137 140 147 134 127
Average receivable collection period 36 27 28 31 35
Average payables payment period 29 27 32 32 28
Short-term Activity Ratio
Cash conversion cycle1 144 140 143 133 134
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 139 101 99 64 62
Analog Devices Inc. 121 110 99 105 114
Apple Inc. -61 -63 -84 -86 -71
Applied Materials Inc. 170 174 159 150 149
Broadcom Inc. 41 54 70 65 67
Cisco Systems Inc. 22 26 40 44 46
Intel Corp. 63 95 82 96 77
Lam Research Corp. 164 135 156 140 148
Micron Technology Inc. 143 142 117 118 115
NVIDIA Corp. 81 129 67 84 57
Qualcomm Inc. 55 17 41 62 22
Cash Conversion Cycle, Sector
Technology Hardware & Equipment 0 0 -15 -14 -10
Cash Conversion Cycle, Industry
Technology 13 13 2 3 5

Based on: 10-K (filing date: 2021-02-05), 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23).

1 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 137 + 3629 = 144

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.’s cash conversion cycle improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.