Texas Instruments Incorporated (TXN)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	15,641,000	17,519,000	20,028,000	18,344,000	14,461,000
Property, plant and equipment	US$ in thousands	—	—	6,876,000	5,141,000	3,269,000
Fixed asset turnover		—	—	2.91	3.57	4.42

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,641,000K ÷ $—K
= —

The fixed asset turnover ratio is a key financial metric that helps in evaluating how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Texas Instruments Incorporated, the fixed asset turnover has been declining over the years.

As of December 31, 2020, the fixed asset turnover ratio was relatively high at 4.42, indicating that the company was effectively generating revenue using its fixed assets. However, by December 31, 2021, the ratio decreased to 3.57, suggesting a decrease in efficiency in utilizing fixed assets to generate sales.

Furthermore, the trend continued with a further decrease in the fixed asset turnover ratio to 2.91 as of December 31, 2022. The absence of data for December 31, 2023, and December 31, 2024 makes it difficult to assess the exact performance during those periods.

Overall, the declining trend in the fixed asset turnover ratio of Texas Instruments Incorporated signals potential concerns about the efficiency of using fixed assets to drive revenue generation. Further analysis and investigation may be needed to understand the reasons behind this trend and to identify possible operational improvements that could help enhance the company's asset utilization efficiency.