Texas Instruments Incorporated (TXN)

Return on assets (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
Net income (ttm)	US$ in thousands	6,510,000	7,101,000	7,687,000	8,256,000	8,749,000	8,925,000	8,577,000	8,217,000	7,769,000	7,319,000	6,725,000	6,174,000	5,595,000	4,977,000	5,049,000	4,974,000	5,017,000	5,186,000	5,331,000	5,431,000
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
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $6,510,000K ÷ $32,348,000K
= 20.12%

Texas Instruments Inc. has shown a consistent decline in Return on Assets (ROA) over the past eight quarters, starting at 32.01% in Q4 2022 and steadily decreasing to 20.02% in Q4 2023. This trend indicates a reduction in the company's ability to generate profit from its total assets. The decrease in ROA could be attributed to various factors such as declining profitability, inefficient asset utilization, or increased asset base without a corresponding increase in earnings. It is crucial for Texas Instruments Inc. to closely monitor and address the factors contributing to the declining ROA to improve overall financial performance and efficiency in the utilization of its assets.