Texas Instruments Incorporated (TXN)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	9,094,000	9,211,000	9,552,000	10,251,000	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
Revenue (ttm)	US$ in thousands	15,641,000	15,711,000	16,092,000	16,801,000	17,519,000	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
Gross profit margin		58.14%	58.63%	59.36%	61.01%	62.90%	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%

December 31, 2024 calculation

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

The gross profit margin of Texas Instruments Incorporated has displayed a general upward trend over the last five years, starting at 63.68% as of March 31, 2020, and reaching its peak at 69.51% as of September 30, 2022. However, the margin then experienced a slight decline over the subsequent reporting periods, dropping to 58.14% as of December 31, 2024.

The consistently high gross profit margins observed in the earlier years suggest efficient cost management and strong pricing power. The gradual increase in margins up to September 30, 2022, indicates improvements in operational efficiency and/or product pricing strategies. However, the subsequent decline in margins may raise concerns about potential challenges faced by the company, such as increased production costs or pricing pressures.

Overall, while the declining trend in gross profit margins over the most recent quarters warrants attention, Texas Instruments Incorporated's historical performance demonstrates a track record of maintaining relatively healthy margins relative to its cost of goods sold. Further analysis of the company's cost structure, pricing strategies, and industry dynamics may provide more insights into the factors driving these margin fluctuations.