Texas Instruments Incorporated (TXN)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,341,000 | 5,497,000 | 5,835,000 | 6,559,000 | 7,331,000 | 7,974,000 | 8,760,000 | 9,511,000 | 10,140,000 | 10,467,000 | 10,094,000 | 9,584,000 | 8,960,000 | 8,270,000 | 7,574,000 | 6,589,000 | 5,894,000 | 5,330,000 | 5,310,000 | 5,588,000 |
| Total assets | US$ in thousands | 35,509,000 | 35,321,000 | 35,048,000 | 34,885,000 | 32,348,000 | 31,638,000 | 30,939,000 | 29,220,000 | 27,207,000 | 26,057,000 | 24,723,000 | 25,276,000 | 24,676,000 | 23,273,000 | 20,603,000 | 19,639,000 | 19,351,000 | 18,207,000 | 17,445,000 | 17,283,000 |
| Operating ROA | 15.04% | 15.56% | 16.65% | 18.80% | 22.66% | 25.20% | 28.31% | 32.55% | 37.27% | 40.17% | 40.83% | 37.92% | 36.31% | 35.53% | 36.76% | 33.55% | 30.46% | 29.27% | 30.44% | 32.33% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,341,000K ÷ $35,509,000K
= 15.04%
Operating ROA is a key financial ratio that measures a company's ability to generate operating profit from its assets. In the case of Texas Instruments Incorporated, the operating ROA has shown a fluctuating trend over the reported periods.
The operating ROA started at a strong level of 32.33% as of March 31, 2020, indicating efficient utilization of assets to generate operating income. It slightly decreased to 30.44% by June 30, 2020, before further declining to 29.27% by September 30, 2020. However, the ratio showed signs of improvement, reaching 30.46% by December 31, 2020.
Subsequently, there was a notable upward trend in the operating ROA from March 31, 2021, where it stood at 33.55%, continuing to climb to 40.83% by June 30, 2022, marking a significant increase in operational efficiency and profitability.
However, there was a downturn in the operating ROA in the latter part of the reporting period, with a decline to 15.04% by December 31, 2024. This downward trend may raise concerns about the company's ability to effectively generate profits from its assets in the short term.
Overall, the fluctuating trend of Texas Instruments Incorporated's operating ROA suggests varying levels of efficiency in utilizing its assets to generate operating income over the reporting periods. Further analysis of the company's operational performance and asset management strategies may be required to understand the underlying factors contributing to the observed fluctuations.
Peer comparison
Dec 31, 2024