Texas Instruments Incorporated (TXN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,508,000 | 20,028,000 | 18,344,000 | 14,461,000 | 14,383,000 |
| Property, plant and equipment | US$ in thousands | 9,999,000 | 6,876,000 | 5,141,000 | 3,269,000 | 3,303,000 |
| Fixed asset turnover | 1.75 | 2.91 | 3.57 | 4.42 | 4.35 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,508,000K ÷ $9,999,000K
= 1.75
Texas Instruments Inc. has exhibited a declining trend in its fixed asset turnover ratio over the past five years. The ratio decreased from 4.35 in 2019 to 1.75 in 2023. This indicates that the company's efficiency in generating sales revenue from its investment in fixed assets has been deteriorating. A lower fixed asset turnover ratio may suggest underutilization of fixed assets or potential inefficiencies in production processes. Management should closely monitor and analyze the factors contributing to this decline to improve operational efficiency and optimize the utilization of fixed assets in the future.
Peer comparison
Dec 31, 2023