Texas Instruments Incorporated (TXN)

Working capital 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
Total current assets	US$ in thousands	15,122,000	15,097,000	15,514,000	15,023,000	14,021,000	13,772,000	13,043,000	14,010,000	13,685,000	13,585,000	11,177,000	10,405,000	10,239,000	9,259,000	8,488,000	8,310,000	8,761,000	8,713,000	7,956,000	7,951,000
Total current liabilities	US$ in thousands	3,320,000	2,652,000	2,711,000	2,904,000	2,985,000	2,798,000	2,560,000	2,528,000	2,569,000	2,413,000	2,201,000	1,700,000	2,390,000	2,185,000	2,163,000	2,381,000	2,123,000	2,007,000	2,646,000	2,159,000
Working capital turnover		1.48	1.46	1.47	1.61	1.81	1.84	1.87	1.65	1.65	1.57	1.87	1.77	1.84	1.94	2.16	2.38	2.17	2.20	2.87	2.69

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (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 varied over the past 8 quarters, ranging from a low of 1.46 in Q3 2023 to a high of 1.87 in Q2 2022. This ratio measures how effectively the company is utilizing its working capital to generate sales revenue.

A higher working capital turnover ratio indicates that the company is efficient in managing its working capital to support its operations and sales. In the case of Texas Instruments Inc., the ratios have generally been above 1.5, suggesting that the company is effectively using its working capital to generate revenue.

The slight fluctuations in the ratio over the quarters may indicate changes in the company's working capital management practices or sales performance. It's notable that the ratio decreased in the most recent quarters of 2023 compared to the higher ratios seen in 2022, which could be a point for further analysis to understand the underlying reasons for this trend.

Overall, a working capital turnover ratio above 1 signifies that Texas Instruments Inc. is efficiently utilizing its working capital to support its sales activities, but monitoring the trend over time and comparing it to industry benchmarks can provide deeper insights into the company's operational efficiency.