Texas Instruments Incorporated (TXN)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 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 | 5,723,000 | 5,990,000 | 6,338,000 | 6,544,000 |
| Total assets | US$ in thousands | 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 | 18,018,000 | 17,992,000 | 17,384,000 | 17,443,000 |
| Operating ROA | 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% | 31.76% | 33.29% | 36.46% | 37.52% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $7,331,000K ÷ $32,348,000K
= 22.66%
To analyze Texas Instruments Inc.'s operating return on assets (ROA) based on the data provided, we can observe a trend of decreasing operating ROA over the quarters. The operating ROA declined from 38.21% in Q4 2022 to 22.66% in Q4 2023. This downward trend suggests that the company's ability to generate profits from its assets has been decreasing over the past year.
The highest operating ROA was observed in Q2 2022 at 41.77%, followed closely by Q3 2022 at 41.18%. However, the company experienced a significant drop in operating ROA in subsequent quarters. Q1 2023 saw a notable decrease to 33.20%, continuing the downward trend.
The operating ROA further decreased to 28.72% in Q2 2023 and 25.36% in Q3 2023 before reaching the lowest point of 22.66% in Q4 2023. This significant decline in operating ROA could indicate potential challenges or inefficiencies in the company's operations or a decrease in profitability relative to its asset base.
It would be crucial for Texas Instruments Inc. to closely evaluate the factors contributing to this decline in operating ROA and take appropriate measures to improve operational efficiency, profitability, and asset utilization to reverse this negative trend and ensure sustainable performance in the future.
Peer comparison
Dec 31, 2023