Texas Instruments Incorporated (TXN)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	18,018,000	17,992,000	17,384,000	17,443,000
Total stockholders’ equity	US$ in thousands	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	8,907,000	8,985,000	8,486,000	8,519,000
Financial leverage ratio		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	2.02	2.00	2.05	2.05

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 exhibited some fluctuation over the past eight quarters, ranging from 1.75 to 1.94. The ratio indicates the company's reliance on debt financing to support its operations and growth.

In Q4 2023 and Q3 2023, the financial leverage ratio was 1.91 and 1.90 respectively, showing a relatively stable level of leverage during these periods. However, in Q2 2023, the ratio increased to 1.94, indicating a slightly higher level of debt compared to the previous quarters.

Conversely, in Q1 2023, the financial leverage ratio decreased to 1.92, which suggests a decrease in the company's dependence on debt financing. Comparing these figures to the same quarters in 2022, there has been a general upward trend in the financial leverage ratio, indicating potentially increasing leverage over time.

Overall, Texas Instruments Inc. seems to maintain a moderate level of financial leverage, which can provide benefits such as tax shield and higher return on equity but also brings risks associated with debt servicing and financial stability. It would be important to monitor the trend in the financial leverage ratio to assess the company's ability to manage its debt levels effectively.