Texas Instruments Incorporated (TXN)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	17,508,000	18,112,000	18,821,000	19,502,000	20,028,000	20,190,000	19,592,000	18,960,000	18,344,000	17,588,000	16,762,000	15,421,000	14,461,000	13,735,000	13,689,000	14,118,000	14,383,000	14,750,000	15,240,000	15,589,000
Property, plant and equipment	US$ in thousands	9,999,000	9,320,000	8,525,000	7,665,000	6,876,000	6,485,000	5,931,000	5,439,000	5,141,000	4,021,000	3,678,000	3,431,000	3,269,000	3,190,000	3,201,000	3,233,000	3,303,000	3,318,000	3,365,000	3,318,000
Fixed asset turnover		1.75	1.94	2.21	2.54	2.91	3.11	3.30	3.49	3.57	4.37	4.56	4.49	4.42	4.31	4.28	4.37	4.35	4.45	4.53	4.70

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,508,000K ÷ $9,999,000K
= 1.75

Texas Instruments Inc.'s fixed asset turnover ratio has been gradually decreasing over the past eight quarters, indicating a declining efficiency in generating sales revenue from its fixed assets. The ratio stood at 3.49 in Q1 2022 and has since declined to 1.75 in Q4 2023.

A fixed asset turnover ratio of less than 1 suggests that the company is not effectively utilizing its fixed assets to generate sales. Although Texas Instruments Inc.'s ratio has remained above 1 in all the quarters, the downward trend is a cause for concern.

The declining fixed asset turnover ratio may be a result of various factors such as underutilization of fixed assets, aging equipment, or inefficient production processes. Management should closely monitor this trend and take necessary steps to improve operational efficiency and utilization of fixed assets to enhance revenue generation.