Texas Instruments Incorporated (TXN)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	11,019,000	11,675,000	12,477,000	13,192,000	13,771,000	14,034,000	13,569,000	13,021,000	12,376,000	11,672,000	10,973,000	9,978,000	9,269,000	8,720,000	8,713,000	8,991,000	9,164,000	9,474,000	9,832,000	10,091,000
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
Gross profit margin		62.94%	64.46%	66.29%	67.64%	68.76%	69.51%	69.26%	68.68%	67.47%	66.36%	65.46%	64.70%	64.10%	63.49%	63.65%	63.68%	63.71%	64.23%	64.51%	64.73%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $11,019,000K ÷ $17,508,000K
= 62.94%

The gross profit margin of Texas Instruments Inc. has shown a downward trend over the last two years, declining from 68.76% in Q4 2022 to 62.90% in Q4 2023. This decrease indicates a decrease in the percentage of revenue remaining after accounting for the cost of goods sold. While the company's gross profit margin fluctuated slightly quarter by quarter, the overall trajectory has been a decline. It is essential for the company to closely monitor and manage its cost of goods sold to improve its gross profit margin and overall profitability in the future.