Texas Instruments Incorporated (TXN)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	16,897,000	16,631,000	15,940,000	15,243,000	14,577,000	14,507,000	14,092,000	14,017,000	13,333,000	12,151,000	11,153,000	10,166,000	9,187,000	8,325,000	7,644,000	7,734,000	8,907,000	8,985,000	8,486,000	8,519,000
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $6,510,000K ÷ $16,897,000K
= 38.53%

Texas Instruments Inc.'s return on equity (ROE) has shown a declining trend over the past eight quarters, dropping from 59.75% in Q4 2022 to 38.33% in Q4 2023. This downward trend indicates a decrease in the company's profitability relative to its shareholder equity over time. The ROE values consistently ranging above 50% till Q1 2023 reflect historically strong profitability, with Q2 2023 showing the highest ROE of 47.99% during this period. However, the subsequent quarters experienced a decline, with Q4 2023 hitting the lowest ROE of 38.33%. This decline may raise concerns about the company's ability to generate returns for its shareholders efficiently. Further analysis is recommended to understand the factors contributing to this trend and to assess the company's overall financial health.