Texas Instruments Incorporated (TXN)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,510,000 | 8,749,000 | 7,769,000 | 5,595,000 | 5,017,000 |
| Revenue | US$ in thousands | 17,508,000 | 20,028,000 | 18,344,000 | 14,461,000 | 14,383,000 |
| Net profit margin | 37.18% | 43.68% | 42.35% | 38.69% | 34.88% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $6,510,000K ÷ $17,508,000K
= 37.18%
The net profit margin of Texas Instruments Inc. has shown a consistent trend of strong profitability over the past five years, with the margin ranging from 34.66% in 2019 to 43.49% in 2022. In 2023, the net profit margin decreased to 36.97%. This indicates that for every dollar of revenue generated, the company retained approximately 36.97 cents as profit after accounting for all expenses and taxes.
Although there was a slight decline in the net profit margin in 2023 compared to the previous year, the company still maintains a healthy margin, indicating efficient cost management and profitability. The fluctuations in the net profit margin over the years could be attributed to various factors such as changes in revenue, costs, and expenses.
Overall, Texas Instruments Inc. has demonstrated a strong ability to convert its revenue into profit, reflecting its operational efficiency and financial performance in recent years. Investors and stakeholders may view the company favorably based on its track record of healthy net profit margins.
Peer comparison
Dec 31, 2023