Texas Instruments Incorporated (TXN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 62.94% | 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% | 63.71% | 64.23% | 64.51% | 64.73% |
| Operating profit margin | 41.87% | 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% | 39.79% | 40.61% | 41.59% | 41.98% |
| Pretax margin | 42.37% | 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% | 39.82% | 40.50% | 41.46% | 41.76% |
| Net profit margin | 37.18% | 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% | 34.88% | 35.16% | 34.98% | 34.84% |
Texas Instruments Inc. has consistently demonstrated strong profitability as reflected in its financial ratios over the past eight quarters. The company's gross profit margin has gradually decreased from 68.76% in Q4 2022 to 62.90% in Q4 2023, indicating a decline in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown a downward trend from 51.91% in Q4 2022 to 41.85% in Q4 2023, suggesting a reduction in the percentage of revenue converted into operating profit after deducting operating expenses. This may be attributed to increased operating costs or lower revenue generation efficiency.
The trend in pretax margin also indicates a decline over the quarters, with a decrease from 50.09% in Q4 2022 to 42.34% in Q4 2023. This signifies a reduction in the percentage of revenue remaining after accounting for all expenses, but before taxes are paid.
Despite these declining trends, Texas Instruments Inc. has maintained a healthy net profit margin, which measures the percentage of revenue that translates into net income. The net profit margin has consistently remained above 36% over the quarters, indicating the company's ability to effectively manage expenses and generate profitability.
Overall, while there have been diminishing trends in the profitability ratios of Texas Instruments Inc., the company continues to exhibit strong financial performance with a solid net profit margin, suggesting efficient cost management and profitability even in challenging business environments.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 27.84% | 28.82% | 30.67% | 31.14% |
| Return on total capital | 26.64% | 28.94% | 32.61% | 38.24% | 44.45% | 47.70% | 48.44% | 45.08% | 43.55% | 42.65% | 44.80% | 40.14% | 38.19% | 36.58% | 38.23% | 42.23% | 40.27% | 41.93% | 48.59% | 48.20% |
| Return on equity (ROE) | 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% | 56.33% | 57.72% | 62.82% | 63.75% |
Texas Instruments Inc. has demonstrated consistent profitability over the past eight quarters as indicated by its profitability ratios.
- The Operating Return on Assets (Operating ROA) has shown a decreasing trend from 38.21% in Q4 2022 to 22.66% in Q4 2023, but remains at healthy levels indicating the company's efficiency in generating earnings from its assets.
- The Return on Assets (ROA) has also decreased over the same period, from 32.01% in Q4 2022 to 20.02% in Q4 2023. This metric reflects the company's ability to generate earnings from its total assets, including liabilities and equity.
- Texas Instruments' Return on Total Capital has also decreased from 44.60% in Q4 2022 to 26.07% in Q4 2023, indicating a decline in the company's ability to generate profits from both debt and equity capital employed.
- The Return on Equity (ROE) has followed a similar decreasing trend, decreasing from 59.75% in Q4 2022 to 38.33% in Q4 2023. This metric reflects the company's profitability in relation to the equity invested by shareholders.
Overall, while the profitability ratios have shown a declining trend, Texas Instruments Inc. continues to maintain strong profitability levels compared to industry benchmarks, indicating efficient use of assets and capital to generate profits.
See also:
Texas Instruments Incorporated Profitability Ratios (Quarterly Data)