Texas Instruments Incorporated (TXN)

Receivables 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
Receivables	US$ in thousands	1,787,000	1,976,000	1,956,000	1,877,000	1,895,000	2,040,000	2,190,000	1,795,000	1,701,000	1,653,000	1,591,000	1,584,000	1,414,000	1,392,000	1,176,000	1,316,000	1,074,000	1,342,000	1,419,000	1,440,000
Receivables turnover		9.80	9.17	9.62	10.39	10.57	9.90	8.95	10.56	10.78	10.64	10.54	9.74	10.23	9.87	11.64	10.73	13.39	10.99	10.74	10.83

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $17,508,000K ÷ $1,787,000K
= 9.80

The receivables turnover for Texas Instruments Inc. over the past eight quarters has fluctuated, ranging from a low of 8.95 in Q2 2022 to a high of 10.57 in Q4 2022. The turnover ratio measures how efficiently the company is collecting its accounts receivable, with higher values indicating a faster collection cycle.

The averages for the receivables turnover ratio for the last eight quarters is approximately 9.89. This suggests that, on average, Texas Instruments Inc. collects its accounts receivable about 9.89 times per year.

A consistent or increasing trend in the receivables turnover ratio indicates effective credit and collection policies, prompt customer payments, and efficient management of accounts receivable. On the other hand, a decreasing trend in the ratio may signal issues with credit risk, collection efforts, or a potential decrease in sales.

Overall, the analysis of the receivables turnover ratio for Texas Instruments Inc. shows some variability over the quarters, but the company generally demonstrates efficient management of its accounts receivable during the period under review.