Texas Instruments Incorporated (TXN)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	6,547,000	6,500,000	6,257,000	5,968,000	5,192,000
Inventory	US$ in thousands	4,527,000	3,999,000	2,757,000	1,910,000	1,955,000
Inventory turnover		1.45	1.63	2.27	3.12	2.66

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,547,000K ÷ $4,527,000K
= 1.45

Texas Instruments Incorporated's inventory turnover has fluctuated over the past five years.

In 2020, the inventory turnover was 2.66, indicating that the company generated sales 2.66 times relative to its average inventory during that year. Subsequently, in 2021, the turnover improved to 3.12, suggesting more efficient inventory management and faster sales turnover.

However, the trend reversed in 2022 with a decrease to 2.27, followed by a notable decline to 1.63 in 2023, indicating potential inventory management challenges or slower sales relative to inventory levels. This could potentially lead to excess inventory or liquidity concerns.

By the end of 2024, the inventory turnover further dropped to 1.45, indicating a continuing trend of slower inventory turnover and potentially struggling sales efficiency.

Overall, Texas Instruments Incorporated's inventory turnover has been variable, suggesting the need for the company to focus on optimizing inventory management practices to improve operational efficiency and financial performance.