Texas Instruments Incorporated (TXN)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 6,510,000 | 8,749,000 | 7,769,000 | 5,595,000 | 5,017,000 |
| Total assets | US$ in thousands | 32,348,000 | 27,207,000 | 24,676,000 | 19,351,000 | 18,018,000 |
| ROA | 20.12% | 32.16% | 31.48% | 28.91% | 27.84% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $6,510,000K ÷ $32,348,000K
= 20.12%
The return on assets (ROA) of Texas Instruments Inc. has been consistently strong over the past five years, ranging from 20.02% in 2023 to 27.67% in 2019. This indicates that the company has been effectively utilizing its assets to generate profits. The upward trend in ROA from 2019 to 2022 reflects an improvement in asset efficiency and profitability. However, there was a slight decrease in ROA in 2023 compared to the previous year, which may suggest potential challenges in maintaining or increasing profitability relative to the level of assets employed. Overall, Texas Instruments Inc. has demonstrated a strong ability to generate returns relative to its total assets, but it is important to monitor any fluctuations in ROA as they may indicate changes in the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023