Texas Instruments Incorporated (TXN)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	1.45	1.51	1.59	1.60	1.63	1.65	1.70	1.92	2.27	2.56	2.74	2.88	3.12	3.18	3.12	2.88	2.66	2.42	2.33	2.56
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	1.37	1.29	1.22	1.21	1.48	1.46	1.47	1.61	1.81	1.84	1.87	1.65	1.65	1.57	1.87	1.77	1.84	1.94	2.16	2.38

The activity ratios of Texas Instruments Incorporated can provide insights into the efficiency of the company's operations.

1. Inventory Turnover: Texas Instruments has shown fluctuations in inventory turnover over the past few years. The company's inventory turnover ratio improved consistently from March 2020 to September 2021, indicating efficient management of inventory levels. However, there was a slight decline in inventory turnover from September 2021 to December 2024, suggesting potential issues with managing inventory efficiently.

2. Receivables Turnover: The data does not provide information on receivables turnover, which is the ratio of net credit sales to average accounts receivable. Without this information, it is challenging to assess how quickly the company collects payments from its customers.

3. Payables Turnover: Similar to receivables turnover, information on payables turnover, which measures how quickly a company pays its suppliers, is not available in the data provided.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales revenue. Texas Instruments' working capital turnover ratio fluctuated over the years, with a general decline from March 2020 to December 2024. This trend may indicate challenges in effectively utilizing working capital in revenue generation activities.

In conclusion, while Texas Instruments showed improvements in inventory turnover in the earlier years, there seem to be some challenges in working capital turnover efficiency in recent years. However, without information on receivables and payables turnover, a comprehensive analysis of the company's overall activity ratios is limited.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	252.38	241.24	229.16	227.53	224.56	221.60	214.55	190.19	160.83	142.54	133.26	126.60	116.81	114.94	117.02	126.74	137.44	150.80	156.68	142.60
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Texas Instruments Incorporated's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the reported periods. The company saw a decrease in inventory holding efficiency from March 2020 to December 2022. However, the trend reversed in the subsequent periods, increasing significantly by December 2024. This could indicate challenges in managing inventory levels efficiently or changes in demand patterns affecting production planning.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are unavailable for analysis, as no values were provided for these periods. This limits the ability to evaluate the company's collection efficiency and payment practices, which are crucial for assessing liquidity and cash flow management.

Overall, monitoring and improving inventory management practices to reduce Days of Inventory on Hand and ensuring timely collection of receivables would be essential for Texas Instruments to enhance operational efficiency and maintain healthy liquidity levels.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	—	—	—	—	—	—	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
Total asset turnover	0.44	0.44	0.46	0.48	0.54	0.57	0.61	0.67	0.74	0.77	0.79	0.75	0.74	0.76	0.81	0.79	0.75	0.75	0.78	0.82

Texas Instruments Incorporated's fixed asset turnover ratio has been declining steadily from 4.37 in March 2020 to 2.91 in December 2022. This indicates a decrease in the company's efficiency in generating sales from its fixed assets over the period. The decreasing trend suggests the company may be facing challenges in effectively utilizing its fixed assets to generate revenue.

Similarly, the total asset turnover ratio has also shown a decreasing trend, from 0.82 in March 2020 to 0.44 in December 2024. This indicates a decline in the company's ability to generate sales from its total assets. The decreasing total asset turnover ratio may signal inefficiencies in asset utilization or potentially declining sales volume relative to the company's asset base.

Overall, the declining fixed asset turnover and total asset turnover ratios suggest a decrease in efficiency and effectiveness in utilizing both fixed and total assets to generate sales for Texas Instruments Incorporated over the analyzed period. Further analysis would be needed to identify the specific underlying factors contributing to these trends and to assess their implications for the company's financial performance and operational strategies.