Texas Instruments Incorporated (TXN)

Financial leverage ratio

		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
Total assets	US$ in thousands	35,509,000	35,321,000	35,048,000	34,885,000	32,348,000	31,638,000	30,939,000	29,220,000	27,207,000	26,057,000	24,723,000	25,276,000	24,676,000	23,273,000	20,603,000	19,639,000	19,351,000	18,207,000	17,445,000	17,283,000
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
Financial leverage ratio		2.10	2.05	2.04	2.05	1.91	1.90	1.94	1.92	1.87	1.80	1.75	1.80	1.85	1.92	1.85	1.93	2.11	2.19	2.28	2.23

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $35,509,000K ÷ $16,903,000K
= 2.10

The financial leverage ratio of Texas Instruments Incorporated has exhibited a declining trend over the analyzed period from March 31, 2020, to December 31, 2024. This ratio measures the company's level of debt relative to its equity, indicating the extent to which the firm relies on debt financing.

Initially, the ratio stood at 2.23 on March 31, 2020, and showed fluctuations in the range of 2.11 to 2.28 until December 31, 2020. Subsequently, there was a noticeable downward trend in the ratio from March 31, 2021, to June 30, 2022, where it decreased steadily from 1.93 to 1.75.

Following this period of decline, there was a slight uptick in the financial leverage ratio towards the end of 2022 and into 2023, reaching 2.05 on December 31, 2024. This indicates a potential reversion to higher debt levels relative to equity. However, the ratio remained relatively stable around 1.90 to 2.10 throughout 2024.

Overall, the decreasing trend in Texas Instruments' financial leverage ratio until June 30, 2022, suggests a reduced reliance on debt financing during this period, potentially indicating a more conservative capital structure. However, the subsequent increase in the ratio towards the end of the analyzed period warrants monitoring for any potential shifts in the company's leverage strategy.