Texas Instruments Incorporated (TXN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.14% | 58.63% | 59.36% | 61.01% | 62.90% | 64.46% | 66.29% | 67.64% | 68.76% | 69.51% | 69.26% | 68.68% | 67.47% | 66.36% | 65.46% | 64.70% | 64.10% | 63.49% | 63.65% | 63.68% |
| Operating profit margin | 34.15% | 34.99% | 36.26% | 39.04% | 41.85% | 44.03% | 46.54% | 48.77% | 50.63% | 51.84% | 51.52% | 50.55% | 48.84% | 47.02% | 45.19% | 42.73% | 40.76% | 38.81% | 38.79% | 39.58% |
| Pretax margin | 34.86% | 35.91% | 37.35% | 40.27% | 42.34% | 44.37% | 46.61% | 48.47% | 50.09% | 51.15% | 50.76% | 50.14% | 48.62% | 47.66% | 45.91% | 43.65% | 41.61% | 38.93% | 39.01% | 39.49% |
| 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% |
Texas Instruments Incorporated has shown a consistent improvement in its profitability ratios over the past few quarters.
- The Gross Profit Margin has steadily increased from 63.68% in March 2020 to 58.14% in December 2024, with a temporary dip in the recent quarters.
- The Operating Profit Margin has shown a similar trend, rising from 39.58% in March 2020 to 34.15% in December 2024, with fluctuations in the middle quarters.
- The Pretax Margin has also displayed a positive trajectory, increasing from 39.49% in March 2020 to 34.86% in December 2024, with occasional ups and downs.
- The Net Profit Margin has gradually grown from 35.23% in March 2020 to 30.68% in December 2024, albeit with some variability in the middle periods.
Overall, Texas Instruments has effectively managed its profitability, with a general upward trend across all key ratios, although some variability is evident in the more recent quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.51% | 14.06% | 15.16% | 16.93% | 20.12% | 22.44% | 24.85% | 28.25% | 32.16% | 34.25% | 34.69% | 32.51% | 31.48% | 31.45% | 32.64% | 31.44% | 28.91% | 27.34% | 28.94% | 28.78% |
| Return on total capital | 35.27% | 35.43% | 37.49% | 42.20% | 45.99% | 50.22% | 56.73% | 63.52% | 70.29% | 72.59% | 71.96% | 69.17% | 68.27% | 70.50% | 70.67% | 68.10% | 67.56% | 66.47% | 72.23% | 74.37% |
| Return on equity (ROE) | 28.39% | 28.75% | 30.86% | 34.78% | 38.53% | 42.70% | 48.22% | 54.16% | 60.02% | 61.52% | 60.86% | 58.62% | 58.27% | 60.23% | 60.30% | 60.73% | 60.90% | 59.78% | 66.05% | 64.31% |
Texas Instruments Incorporated's profitability ratios display a generally positive trend over the past few years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has shown an increasing trend from 32.33% in March 2020 to a peak of 40.83% in June 2022. However, there was a slight decline to 15.04% by December 2024. This metric indicates the company's ability to generate profits from its operational assets.
2. Return on Assets (ROA): The ROA also exhibited a growth pattern, reaching its highest point of 34.69% in June 2022. However, there was a notable decrease to 13.51% by December 2024. ROA reflects the company's efficiency in using its total assets to generate earnings.
3. Return on Total Capital: The Return on Total Capital ratio saw a similar trajectory, peaking at 72.59% in September 2022 but declining to 35.27% by December 2024. This ratio signifies the company's ability to earn returns for both debt and equity providers.
4. Return on Equity (ROE): ROE ranged from 64.31% in March 2020 to 28.39% in December 2024. While there was a declining trend, the values remained relatively healthy, indicating the company's ability to generate returns for its shareholders.
Overall, Texas Instruments has demonstrated a strong profitability performance, although there was a noticeable decline in profitability ratios towards the end of the period under review. It is essential for investors to closely monitor these ratios to assess the company's financial health and performance.
See also:
Texas Instruments Incorporated Profitability Ratios (Quarterly Data)