Texas Instruments Incorporated (TXN)

Net 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
Net income (ttm)	US$ in thousands	6,510,000	7,101,000	7,687,000	8,256,000	8,749,000	8,925,000	8,577,000	8,217,000	7,769,000	7,319,000	6,725,000	6,174,000	5,595,000	4,977,000	5,049,000	4,974,000	5,017,000	5,186,000	5,331,000	5,431,000
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
Net profit margin		37.18%	39.21%	40.84%	42.33%	43.68%	44.21%	43.78%	43.34%	42.35%	41.61%	40.12%	40.04%	38.69%	36.24%	36.88%	35.23%	34.88%	35.16%	34.98%	34.84%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $6,510,000K ÷ $17,508,000K
= 37.18%

The net profit margin of Texas Instruments Inc. has shown a gradual decline over the past eight quarters. It decreased from 43.49% in Q4 2022 to 36.97% in Q4 2023, indicating a downward trend in the company's profitability relative to its revenue. This decline continued consistently with each subsequent quarter, reaching 42.13% in Q1 2023.

The net profit margin represents the percentage of revenue that translates into profit after all expenses have been deducted. A decreasing trend in this ratio may suggest that the company's costs are rising at a faster pace than its revenue growth or that its pricing strategies are becoming less effective.

It is important for Texas Instruments Inc. to closely monitor and address the factors contributing to the decline in its net profit margin to ensure sustainable profitability and financial health in the long term.