Texas Instruments Incorporated (TXN)
Receivables 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 |
| Receivables | US$ in thousands | 1,787,000 | 1,895,000 | 1,701,000 | 1,414,000 | 1,074,000 |
| Receivables turnover | 9.80 | 10.57 | 10.78 | 10.23 | 13.39 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $17,508,000K ÷ $1,787,000K
= 9.80
Texas Instruments Inc.'s receivables turnover ratio has shown a decreasing trend over the last five years. The ratio decreased from 13.39 in 2019 to 9.80 in 2023. This indicates that the company is collecting its accounts receivable at a slower pace in recent years. A lower receivables turnover ratio may suggest that the company is extending more lenient credit terms to customers or experiencing difficulties in collecting payments promptly. It could also indicate potential liquidity or operational challenges. Management should closely monitor this trend and take appropriate measures to improve collection efficiency and maintain healthy cash flows.
Peer comparison
Dec 31, 2023