Texas Instruments Incorporated (TXN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 32,348,000 | 27,207,000 | 24,676,000 | 19,351,000 | 18,018,000 |
| Total stockholders’ equity | US$ in thousands | 16,897,000 | 14,577,000 | 13,333,000 | 9,187,000 | 8,907,000 |
| Financial leverage ratio | 1.91 | 1.87 | 1.85 | 2.11 | 2.02 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $32,348,000K ÷ $16,897,000K
= 1.91
The financial leverage ratio of Texas Instruments Inc. has shown variability over the past five years, ranging from 1.85 in 2021 to 2.11 in 2020. The ratio indicates the company's reliance on debt to finance its operations and investments. A higher ratio suggests a higher level of debt relative to equity, indicating higher financial risk. In contrast, a lower ratio indicates a more conservative capital structure with less debt.
The trend in Texas Instruments Inc.'s financial leverage ratio shows a decrease from 2.11 in 2020 to 1.91 in 2023, which may suggest a reduction in the company's reliance on debt financing over the period. However, it is important to consider the industry norms and overall financial strategy of the company in interpreting this trend. Overall, a thorough analysis of the company's capital structure and debt management practices would provide further insights into its financial leverage position.
Peer comparison
Dec 31, 2023