Texas Instruments Incorporated (TXN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,961,000 | 7,331,000 | 10,246,000 | 9,103,000 | 6,207,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,903,000 | 16,897,000 | 14,577,000 | 13,333,000 | 9,187,000 |
| Return on total capital | 35.27% | 43.39% | 70.29% | 68.27% | 67.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,961,000K ÷ ($—K + $16,903,000K)
= 35.27%
Texas Instruments Incorporated has shown a consistent trend of increasing return on total capital from 67.56% in 2020 to a peak of 70.29% in 2022. However, there was a notable decline in 2023 and 2024, dropping to 43.39% and 35.27%, respectively. Despite the recent decrease, the company has maintained a strong performance in generating returns from its total capital, reflecting efficiency in capital utilization. It will be essential for Texas Instruments to monitor and address the factors contributing to the decline to sustain and enhance its return on total capital in the future.
Peer comparison
Dec 31, 2024