Texas Instruments Incorporated (TXN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,331,000 | 10,140,000 | 8,960,000 | 5,894,000 | 5,723,000 |
| Total assets | US$ in thousands | 32,348,000 | 27,207,000 | 24,676,000 | 19,351,000 | 18,018,000 |
| Operating ROA | 22.66% | 37.27% | 36.31% | 30.46% | 31.76% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $7,331,000K ÷ $32,348,000K
= 22.66%
The operating return on assets (operating ROA) for Texas Instruments Inc. has shown some fluctuation over the past five years. In 2023, the operating ROA stood at 22.66%, representing a decrease from the previous year's level of 38.21%. While the decline may indicate a decrease in the company's operating efficiency or profitability relative to its asset base, it is important to consider the context and potential reasons behind this change.
Comparing the 2023 operating ROA to the levels seen in 2021, 2020, and 2019, we observe a downward trend from a peak of 37.10% in 2021. Despite the recent decline, the 2023 operating ROA remains relatively high compared to the levels seen in 2020 and 2019, indicating that Texas Instruments Inc. has historically been effective in generating operating income from its assets.
It is important to conduct further analysis to understand the drivers behind the fluctuations in the operating ROA and assess the company's operational efficiency, asset utilization, and overall performance. Additional factors such as changes in the company's revenue, expenses, asset base, and industry dynamics should be considered to provide a more comprehensive evaluation of Texas Instruments Inc.'s operating performance.
Peer comparison
Dec 31, 2023