Texas Instruments Incorporated (TXN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Texas Instruments Incorporated, as reflected in the financial data provided, indicate a consistently low level of indebtedness and a strong financial position.
- The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have remained at 0.00 across all reported periods. This signifies that the company's level of debt in relation to its assets, capital, and equity is negligible, indicating a low financial risk and healthy solvency position.
- The Financial leverage ratio has shown a decreasing trend over the years, starting at 2.23 in March 31, 2020, and reaching 2.10 by December 31, 2024. A decreasing trend in financial leverage ratio indicates that the company is relying less on debt to finance its operations, which is a positive indication of financial stability and solvency.
Overall, the solvency ratios of Texas Instruments Incorporated suggest that the company has a strong financial position with minimal debt obligations, indicating a low likelihood of financial distress and the ability to meet its financial obligations comfortably.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.73 | 12.85 | 14.57 | 17.87 | 22.01 | 26.51 | 33.49 | 42.10 | 47.88 | 51.88 | 52.00 | 51.03 | 49.47 | 46.81 | 42.15 | 36.25 | 32.67 | 29.59 | 30.50 | 32.50 |
The interest coverage ratio of Texas Instruments Incorporated has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest obligations with its operating income.
Initially, in March 2020, the interest coverage ratio stood at 32.50, indicating that the company generated 32.50 times the earnings needed to cover its interest expenses. This ratio remained relatively stable over the next few quarters, showing a slight decline but remaining above 30.
From March 31, 2021, onwards, the interest coverage ratio started to improve significantly, reaching its highest point of 52.00 on June 30, 2022. This upward trend demonstrates the company's enhanced ability to meet its interest payments from operating earnings.
However, starting from September 30, 2022, the interest coverage ratio began to decrease steadily, dropping to 11.73 by December 31, 2024. This substantial decline suggests that the company's operating income may not be sufficient to cover its interest obligations effectively.
Overall, while the company experienced a remarkable improvement in its interest coverage ratio in the intermediate period, the sharp decline in the latter quarters raises concerns about its ability to meet interest expenses from operating income in the long run. Monitoring this ratio closely will be crucial to assess the company's financial health and ability to manage its debt effectively.
See also:
Texas Instruments Incorporated Solvency Ratios (Quarterly Data)