Texas Instruments Incorporated (TXN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.10 | 1.91 | 1.87 | 1.85 | 2.11 |
Based on the provided data, Texas Instruments Incorporated has consistently maintained a strong solvency position over the past five years.
The Debt-to-assets ratio for each year is reported as 0.00, indicating that there is no debt in relation to the total assets of the company. This suggests that Texas Instruments relies more on equity financing rather than debt to support its operations.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also show a consistent value of 0.00 throughout the period. These ratios further affirm the company's low dependence on debt for financing its operations and indicate a healthy capital structure.
The Financial leverage ratio, which measures the proportion of the company's assets financed by debt, has fluctuated slightly over the years but remains within a reasonable range. The values range from 1.85 to 2.11, with the highest value observed in 2020 and 2024.
Overall, the solvency ratios reflect that Texas Instruments has been successful in managing its financial obligations without relying heavily on debt. This prudent financial management strategy has helped the company maintain a stable and healthy solvency position over the years.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.73 | 20.77 | 47.88 | 49.47 | 32.67 |
Texas Instruments Incorporated has demonstrated a strong interest coverage ratio over the years based on the provided data. The interest coverage ratio for the company has shown a positive trend from 2020 to 2023, indicating its ability to comfortably meet its interest obligations. In 2020, the interest coverage ratio was 32.67, reflecting a healthy ability to cover interest expenses by 32.67 times. The ratio increased further in 2021 and 2022 to 49.47 and 47.88, respectively, showcasing an improvement in the company's financial position.
However, there was a slight decline in the interest coverage ratio in 2023 to 20.77, which might suggest a relatively lower ability to cover interest expenses compared to the previous year. In 2024, the interest coverage ratio further decreased to 11.73, potentially signaling increased financial risk and a potential challenge in meeting interest obligations.
Overall, the interest coverage ratio of Texas Instruments Incorporated has generally been healthy, indicating a comfortable position to meet interest payments. However, the decreasing trend in recent years warrants monitoring to ensure the company's financial health and ability to service its debt obligations.