Texas Instruments Incorporated (TXN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,641,000 | 17,519,000 | 20,028,000 | 18,344,000 | 14,461,000 |
| Total current assets | US$ in thousands | 15,026,000 | 15,122,000 | 14,021,000 | 13,685,000 | 10,239,000 |
| Total current liabilities | US$ in thousands | 3,643,000 | 3,320,000 | 2,985,000 | 2,569,000 | 2,390,000 |
| Working capital turnover | 1.37 | 1.48 | 1.81 | 1.65 | 1.84 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $15,641,000K ÷ ($15,026,000K – $3,643,000K)
= 1.37
The working capital turnover ratio for Texas Instruments Incorporated has experienced fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The ratio indicates the efficiency with which the company is utilizing its working capital to generate sales revenue.
Starting at 1.84 in 2020, the ratio declined to 1.65 in 2021, suggesting a slight decrease in the efficiency of working capital turnover. However, the ratio improved in 2022 to 1.81, indicating better utilization of working capital to generate sales.
In the subsequent years, the ratio declined further to 1.48 in 2023 and 1.37 in 2024. These decreases may indicate potential inefficiencies in managing working capital or challenges in converting working capital into sales revenue effectively.
Overall, the fluctuating trend in the working capital turnover ratio for Texas Instruments Incorporated warrants a closer examination of the company's working capital management practices to ensure optimal utilization of resources and improved operational efficiency.
Peer comparison
Dec 31, 2024