Texas Instruments Incorporated (TXN)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,799,000 | 6,510,000 | 8,749,000 | 7,769,000 | 5,595,000 |
| Total assets | US$ in thousands | 35,509,000 | 32,348,000 | 27,207,000 | 24,676,000 | 19,351,000 |
| ROA | 13.51% | 20.12% | 32.16% | 31.48% | 28.91% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $4,799,000K ÷ $35,509,000K
= 13.51%
Texas Instruments Incorporated's return on assets (ROA) has shown a positive trend over the years, increasing from 28.91% in December 31, 2020, to 32.16% in December 31, 2022. This indicates that the company has been effectively utilizing its assets to generate profits. However, there was a noticeable decline in ROA to 20.12% in December 31, 2023, followed by a further decrease to 13.51% in December 31, 2024.
The decrease in ROA in 2023 and 2024 suggests that the company may be facing challenges in generating profits relative to its assets. It would be important to further investigate the reasons behind this decline in ROA to assess the company's operational efficiency and profitability. Overall, while the company has demonstrated strong ROA in the past, the recent downward trend raises concerns and requires closer monitoring.
Peer comparison
Dec 31, 2024