Texas Instruments Incorporated (TXN)

Working capital 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
Total current assets	US$ in thousands	15,122,000	14,021,000	13,685,000	10,239,000	8,761,000
Total current liabilities	US$ in thousands	3,320,000	2,985,000	2,569,000	2,390,000	2,123,000
Working capital turnover		1.48	1.81	1.65	1.84	2.17

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $17,508,000K ÷ ($15,122,000K – $3,320,000K)
= 1.48

The working capital turnover ratio for Texas Instruments Inc. has fluctuated over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio typically suggests better efficiency in managing working capital.

In 2023, the working capital turnover decreased to 1.48 from 1.81 in 2022. This decrease may be indicative of a less efficient utilization of working capital during the year. However, a single year's decline should be examined in conjunction with other operating and financial metrics for a comprehensive assessment.

Comparing the 2023 ratio to the values of 1.65 in 2021, 1.84 in 2020, and 2.17 in 2019, it can be observed that the company's working capital turnover has been decreasing gradually over the years. This trend may warrant further investigation into the company's inventory management, accounts receivable, and accounts payable practices to identify potential inefficiencies or operational challenges.

Overall, the working capital turnover ratio provides insights into how effectively Texas Instruments Inc. is managing its working capital to support its sales and operations. The company's management may need to focus on improving this ratio to enhance operational efficiency and financial performance in the future.