Texas Instruments Incorporated (TXN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,961,000 | 6,118,000 | 6,453,000 | 7,166,000 | 7,771,000 | 8,352,000 | 9,043,000 | 9,682,000 | 10,246,000 | 10,531,000 | 10,140,000 | 9,696,000 | 9,103,000 | 8,566,000 | 7,882,000 | 6,923,000 | 6,207,000 | 5,534,000 | 5,521,000 | 5,752,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,903,000 | 17,268,000 | 17,214,000 | 16,983,000 | 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 |
| Return on total capital | 35.27% | 35.43% | 37.49% | 42.20% | 45.99% | 50.22% | 56.73% | 63.52% | 70.29% | 72.59% | 71.96% | 69.17% | 68.27% | 70.50% | 70.67% | 68.10% | 67.56% | 66.47% | 72.23% | 74.37% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,961,000K ÷ ($—K + $16,903,000K)
= 35.27%
Texas Instruments Incorporated's return on total capital has shown a fluctuating trend over the past few years. Starting at a high of 74.37% in March 2020, the ratio gradually decreased to 35.27% by December 2024. Despite some fluctuations, the return on total capital generally remained above 50% until September 2023, signaling the company's ability to generate solid returns on the total capital employed. However, the decreasing trend observed in the latter half of 2023 and into 2024 may indicate a decline in efficiency in generating profits relative to the capital invested. Further analysis would be needed to understand the specific factors driving these changes and to assess the company's overall financial performance and profitability.
Peer comparison
Dec 31, 2024