Texas Instruments Incorporated (TXN)

Net 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
Net income (ttm)	US$ in thousands	4,799,000	4,965,000	5,312,000	5,907,000	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
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
Net profit margin		30.68%	31.60%	33.01%	35.16%	37.16%	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%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $4,799,000K ÷ $15,641,000K
= 30.68%

Texas Instruments Incorporated has shown fluctuations in its net profit margin over the period from March 31, 2020, to December 31, 2024. The net profit margin measures the company's profitability by indicating how much of each dollar in revenue translates into profit after all expenses are deducted.

The net profit margin increased steadily from 35.23% in March 31, 2020, reaching a peak of 44.21% in September 30, 2022. During this period, the company exhibited strong performance in converting revenue into profit. However, there was a slight decline in the net profit margin in the following quarters.

The net profit margin started to decrease from December 31, 2022, and continued to decline, reaching 30.68% by December 31, 2024. This downward trend indicates that the company's profitability decreased as a percentage of revenue during the latter part of the period under review.

Overall, while Texas Instruments Incorporated demonstrated strong profitability with a peak net profit margin of 44.21%, there was a subsequent decline, highlighting potential challenges impacting profitability in the later quarters of the analyzed period.