Texas Instruments Incorporated (TXN)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	9,094,000	11,019,000	13,771,000	12,376,000	9,269,000
Revenue	US$ in thousands	15,641,000	17,519,000	20,028,000	18,344,000	14,461,000
Gross profit margin		58.14%	62.90%	68.76%	67.47%	64.10%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $9,094,000K ÷ $15,641,000K
= 58.14%

The gross profit margin of Texas Instruments Incorporated has shown a generally positive trend over the five-year period from December 31, 2020, to December 31, 2024. It increased from 64.10% in 2020 to 67.47% in 2021, demonstrating improved efficiency in generating profits from its core business operations. The trend continued with a further increase to 68.76% in 2022, indicating the company's ability to effectively manage production costs and maintain strong pricing strategies.

However, there was a slight decline in the gross profit margin in 2023 to 62.90%. This decrease could be attributed to various factors such as pricing pressures, increased competition, or higher input costs that may have impacted the company's profitability during that period.

The most significant change occurred in 2024, where the gross profit margin dropped notably to 58.14%. This significant decline could signal challenges faced by Texas Instruments in maintaining profitability, possibly due to disruptions in the supply chain, macroeconomic factors, or shifts in customer demand.

Overall, while the company has demonstrated an ability to achieve healthy margins historically, the recent decrease in the gross profit margin in 2024 raises some concerns and emphasizes the importance of closely monitoring cost structures and market dynamics to sustain profitability in the future.