Texas Instruments Inc. (NASDAQ:TXN)

Current assets exhibited an initial increase followed by a decline over the five-year period. Reported current assets rose from US$13,685 million in 2021 to US$14,021 million in 2022, continued to increase to a peak of US$15,122 million in 2023, then decreased to US$15,026 million in 2024, and concluded at US$13,750 million in 2025. Adjusted current assets mirrored this trend, beginning at US$13,693 million in 2021, increasing to US$14,034 million in 2022, peaking at US$15,138 million in 2023, decreasing to US$15,047 million in 2024, and ending at US$13,772 million in 2025.

Overall Trend

Both reported and adjusted current assets demonstrate a similar pattern of growth, peaking in 2023, and subsequent decline. The fluctuations suggest potential shifts in working capital management or changes in short-term asset composition. The decrease in both metrics from 2023 to 2025 warrants further investigation to understand the underlying causes.

Adjustment Impact

The difference between reported and adjusted current assets remains relatively consistent across all years. The adjustments add approximately US$8 million to US$12 million to the reported figures annually. This consistent adjustment suggests a systematic difference in how current assets are initially reported versus how they are evaluated after adjustments. The nature of these adjustments would require further scrutiny to determine their impact on the overall financial position.

Growth Rates

The largest percentage increase in both reported and adjusted current assets occurred between 2022 and 2023. The decline from 2023 to 2025 represents a more substantial percentage decrease than the increase from 2021 to 2022, indicating a potentially significant change in the company’s short-term asset strategy or operating environment.

The consistent, though small, difference between reported and adjusted current assets suggests a recurring accounting treatment or valuation difference. The observed trends indicate a period of expansion followed by a contraction in short-term asset holdings, which could be linked to broader economic conditions, industry-specific factors, or internal strategic decisions.

Total assets and adjusted total assets both demonstrate an overall increasing trend from 2021 to 2025. However, the magnitude of growth differs between the two measures, and a recent stabilization/slight decline is observed in the most recent year.

Overall Growth

Total assets increased from US$24,676 million in 2021 to US$35,509 million in 2024, representing a substantial increase over the period. Adjusted total assets followed a similar pattern, growing from US$24,421 million in 2021 to US$34,594 million in 2024. Both metrics experienced a slight decrease in 2025, with total assets falling to US$34,585 million and adjusted total assets to US$33,640 million.

Difference Between Metrics

The difference between total assets and adjusted total assets remained relatively consistent throughout the observed period, generally ranging between US$200 million and US$300 million annually. This suggests that the adjustments made to arrive at adjusted total assets represent a consistent, though not insignificant, portion of the overall asset base.

Growth Rates

The largest percentage increase in total assets occurred between 2022 and 2023 (approximately 18.9%), while the largest percentage increase in adjusted total assets also occurred between 2022 and 2023 (approximately 18.2%). The growth rate slowed considerably between 2024 and 2025 for both metrics, indicating a potential stabilization of asset accumulation.

Recent Trend

The decrease in both total assets and adjusted total assets in 2025 warrants further investigation. This could be due to asset disposals, write-downs, or changes in accounting policies. The deceleration in growth observed in 2025, even before the slight decline, suggests a shift in the company’s asset strategy or external economic factors impacting asset accumulation.

In summary, the company experienced significant asset growth between 2021 and 2024, followed by a period of stabilization and a slight decrease in 2025. The consistent difference between total and adjusted total assets indicates a recurring adjustment process, and the recent trends suggest a potential change in the company’s asset management approach.

Total liabilities exhibited a generally increasing trend from 2021 to 2025. However, adjusted total liabilities demonstrate a slightly moderated increase over the same period. The difference between reported and adjusted liabilities remains relatively consistent throughout the analyzed timeframe.

Overall Trend

Total liabilities increased from US$11,343 million in 2021 to US$18,606 million in 2024, representing a substantial rise. A slight decrease is then observed in 2025, with total liabilities reported at US$18,312 million. Adjusted total liabilities followed a similar pattern, increasing from US$11,251 million in 2021 to US$18,553 million in 2024, before decreasing to US$18,246 million in 2025.

Year-over-Year Changes

The largest year-over-year increase in total liabilities occurred between 2022 and 2023, with an increase of US$2,821 million. The increase between 2023 and 2024 was US$3,155 million. The decrease between 2024 and 2025 was US$294 million. Adjusted total liabilities mirrored this pattern, with the largest increase between 2022 and 2023 (US$2,821 million) and 2023 and 2024 (US$3,165 million), followed by a decrease between 2024 and 2025 (US$307 million).

Adjustment Impact

The difference between total liabilities and adjusted total liabilities was approximately US$92 million in 2021. This difference remained relatively stable, fluctuating between US$66 million and US$92 million throughout the period. The adjustments consistently result in a slightly lower reported liability figure.

The consistent, though small, adjustments suggest a recurring item or methodology applied to the reported total liabilities. The overall upward trend in both reported and adjusted liabilities indicates a growing reliance on debt financing or an increase in other obligations.

Stockholders’ equity exhibited an overall increasing trend from 2021 to 2023, followed by a decline in the subsequent two years. The reported stockholders’ equity increased from US$13,333 million in 2021 to US$16,897 million in 2023, representing a cumulative growth of approximately 26.9%. However, this was followed by a decrease to US$16,273 million by the end of 2025.

Trend in Reported Stockholders’ Equity

The growth in reported stockholders’ equity slowed between 2022 and 2023, with an increase of US$2,320 million compared to the US$1,244 million increase observed between 2021 and 2022. The decline from 2023 to 2025 totaled US$624 million, indicating a moderation in the rate of decrease.

Adjusted stockholders’ equity mirrored the trend observed in reported stockholders’ equity, though the magnitudes of change differed. Adjusted stockholders’ equity rose from US$13,170 million in 2021 to US$16,219 million in 2023, a cumulative increase of approximately 23.1%. A subsequent decrease brought the value to US$15,394 million in 2025.

Trend in Adjusted Stockholders’ Equity

The increase in adjusted stockholders’ equity between 2022 and 2023 was US$2,036 million, lower than the US$1,013 million increase between 2021 and 2022. The decline from 2023 to 2025 amounted to US$825 million, exceeding the decline observed in reported stockholders’ equity over the same period.

The difference between reported and adjusted stockholders’ equity remained relatively stable across the observed period, fluctuating between approximately US$163 million and US$678 million. This suggests that the adjustments made to stockholders’ equity consistently reduced the reported value, but the magnitude of this reduction did not exhibit a significant trend.

Difference Between Reported and Adjusted Values

In 2021, the difference was US$163 million. It peaked in 2023 at US$678 million, and decreased to US$879 million in 2025. This indicates that the adjustments had a more substantial impact in 2023 and 2025 compared to 2021 and 2022.

Overall, the period demonstrates initial growth in both reported and adjusted stockholders’ equity, followed by a decline in the latter two years. The adjustments consistently result in a lower equity value, and the magnitude of these adjustments increased in 2025.

Over the five-year period ending December 31, 2025, both reported and adjusted financial items demonstrate consistent growth, though with some variations in rate and specific item behavior. Total reported debt increased steadily from US$7,741 million in 2021 to US$14,048 million in 2025. Stockholders’ equity exhibited growth through 2023, peaking at US$16,897 million, before experiencing a slight decline in 2024 and 2025, closing at US$16,273 million. Consequently, total reported capital increased from US$21,074 million to US$30,321 million over the same period.

Debt Trends

Reported total debt increased at a compounding rate, with the largest absolute increase occurring between 2022 and 2023 (US$2,488 million). The rate of increase slowed between 2023 and 2025. Adjusted total debt mirrored this trend, consistently exceeding reported total debt by approximately US$465 million to US$773 million throughout the period. The difference between reported and adjusted debt suggests potential reclassifications or accounting adjustments impacting debt recognition.

Equity Trends

Stockholders’ equity showed a consistent upward trend from 2021 to 2023, increasing by US$3,564 million over the period. The subsequent decline in 2024 and 2025, totaling US$624 million, warrants further investigation. Adjusted stockholders’ equity followed a similar pattern, consistently lower than reported equity by approximately US$163 million to US$578 million. This difference suggests adjustments impacting equity recognition, potentially related to accumulated other comprehensive income or similar items.

Capital Structure

Total reported capital increased consistently throughout the period, reflecting the combined growth of debt and equity. Adjusted total capital mirrored this trend, remaining very close to the reported total capital figures. The slight differences between reported and adjusted capital are consistent with the differences observed in debt and equity, indicating that adjustments are applied across both sides of the balance sheet. The overall capital structure appears to be becoming increasingly reliant on debt financing, as the rate of debt increase exceeds that of equity, particularly in the later years of the period.

The adjustments to both debt and equity are relatively consistent across all years, suggesting a systematic application of accounting principles or internal policies. The slight decrease in stockholders’ equity in the final two years, coupled with continued debt growth, could indicate a shift in financing strategy or a period of reduced profitability impacting retained earnings. Further analysis of the underlying components of equity and debt is recommended to understand the drivers behind these trends.

Reported net income for the period exhibited initial growth followed by a decline. Net income increased from US$7,769 million in 2021 to US$8,749 million in 2022, before decreasing to US$6,510 million in 2023 and further to US$4,799 million in 2024. A slight recovery was observed in 2025, with net income reaching US$5,001 million.

Adjusted Net Income Trend

The trend in adjusted net income mirrors that of reported net income. Adjusted net income rose from US$7,971 million in 2021 to US$8,461 million in 2022. Subsequent years saw declines, reaching US$6,263 million in 2023 and US$4,659 million in 2024. Similar to reported net income, a modest increase was noted in 2025, with adjusted net income at US$5,038 million.

The difference between reported and adjusted net income remained relatively consistent across the observed period. The adjustments made generally resulted in a slightly higher net income figure, with the difference ranging from approximately US$200 million to US$300 million annually. This suggests the adjustments consistently contribute a positive impact to the bottom line.

Magnitude of Adjustments

The absolute value of the adjustments appears stable. In 2021, adjusted net income exceeded reported net income by US$202 million. In 2022, the difference was US$188 million. In 2023, the difference was US$253 million, in 2024 it was US$90 million, and in 2025 it was US$37 million. The decreasing difference in 2024 and 2025 may warrant further investigation to understand the changing nature of the adjustments.

Overall, the period demonstrates a cyclical pattern of growth followed by contraction in both reported and adjusted net income. The adjustments to net income consistently present a positive impact, but the magnitude of this impact diminished slightly in the later years of the period.