Texas Instruments Incorporated (TXN)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	4,799,000	4,965,000	5,312,000	5,907,000	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
Total assets	US$ in thousands	35,509,000	35,321,000	35,048,000	34,885,000	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
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $4,799,000K ÷ $35,509,000K
= 13.51%

Texas Instruments Incorporated has exhibited a fluctuating trend in return on assets (ROA) over the periods outlined. From March 31, 2020, to June 30, 2022, the ROA showed a consistent and significant improvement, reaching its peak of 34.69%. This indicates that the company was efficiently generating profits relative to its assets during this period. However, starting from March 31, 2023, there has been a consistent decline in ROA, reaching 13.51% by December 31, 2024.

The declining trend in ROA after June 30, 2022, suggests a potential decrease in the company's profitability relative to its assets. This may indicate inefficiencies in asset utilization or declining profitability levels. It is essential for stakeholders to monitor this trend closely to understand the factors driving these changes and assess the company's overall financial health.