Texas Instruments Incorporated (TXN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,331,000 | 10,140,000 | 8,960,000 | 5,894,000 | 5,723,000 |
| Long-term debt | US$ in thousands | 10,624,000 | 8,235,000 | 7,241,000 | 6,248,000 | 5,303,000 |
| Total stockholders’ equity | US$ in thousands | 16,897,000 | 14,577,000 | 13,333,000 | 9,187,000 | 8,907,000 |
| Return on total capital | 26.64% | 44.45% | 43.55% | 38.19% | 40.27% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,331,000K ÷ ($10,624,000K + $16,897,000K)
= 26.64%
Texas Instruments Inc.'s return on total capital has exhibited fluctuations over the past five years. The return on total capital was 26.07% in 2023, representing a significant decline from the previous year's figure of 44.60%. Despite this decrease, the company's return on total capital remained relatively strong compared to earlier years such as 2020 (38.26%) and 2019 (40.62%). The declining trend from 2022 to 2023 may indicate a potential shift in the company's capital utilization efficiency or profitability. Further analysis of the underlying factors impacting the return on total capital is necessary to better understand Texas Instruments Inc.'s financial performance and sustainability.
Peer comparison
Dec 31, 2023