Texas Instruments Incorporated (TXN)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	15,641,000	15,711,000	16,092,000	16,801,000	17,519,000	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
Total assets	US$ in thousands	35,509,000	35,321,000	35,048,000	34,885,000	32,348,000	31,638,000	30,939,000	29,220,000	27,207,000	26,057,000	24,723,000	25,276,000	24,676,000	23,273,000	20,603,000	19,639,000	19,351,000	18,207,000	17,445,000	17,283,000
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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $15,641,000K ÷ $35,509,000K
= 0.44

Texas Instruments Incorporated has experienced a declining trend in total asset turnover over the periods outlined. The ratio, which measures the efficiency of the company in generating sales revenue relative to its total assets, decreased from 0.82 on March 31, 2020, to 0.44 on December 31, 2024.

This decline suggests that the company is becoming less efficient in utilizing its assets to generate revenue over time. It indicates that, on average, the company is generating less revenue for each dollar of assets it holds.

A decreasing total asset turnover may point to issues such as overinvestment in assets, inefficient asset utilization, or declining sales. It is essential for Texas Instruments to closely monitor this ratio and take necessary steps to improve efficiency in asset utilization to drive revenue growth and enhance overall financial performance in the future.