Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Texas Instruments Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 35,509 32,348 27,207 24,676 19,351
Less: Goodwill 4,362 4,362 4,362 4,362 4,362
Total assets (adjusted) 31,147 27,986 22,845 20,314 14,989
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 16,903 16,897 14,577 13,333 9,187
Less: Goodwill 4,362 4,362 4,362 4,362 4,362
Stockholders’ equity (adjusted) 12,541 12,535 10,215 8,971 4,825

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Texas Instruments Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Texas Instruments Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.44 0.54 0.74 0.74 0.75
Adjusted total asset turnover 0.50 0.63 0.88 0.90 0.96
Financial Leverage
Reported financial leverage 2.10 1.91 1.87 1.85 2.11
Adjusted financial leverage 2.48 2.23 2.24 2.26 3.11
Return on Equity (ROE)
Reported ROE 28.39% 38.53% 60.02% 58.27% 60.90%
Adjusted ROE 38.27% 51.93% 85.65% 86.60% 115.96%
Return on Assets (ROA)
Reported ROA 13.51% 20.12% 32.16% 31.48% 28.91%
Adjusted ROA 15.41% 23.26% 38.30% 38.24% 37.33%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Texas Instruments Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Texas Instruments Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Texas Instruments Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Texas Instruments Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Texas Instruments Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenue 15,641 17,519 20,028 18,344 14,461
Total assets 35,509 32,348 27,207 24,676 19,351
Activity Ratio
Total asset turnover1 0.44 0.54 0.74 0.74 0.75
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 15,641 17,519 20,028 18,344 14,461
Adjusted total assets 31,147 27,986 22,845 20,314 14,989
Activity Ratio
Adjusted total asset turnover2 0.50 0.63 0.88 0.90 0.96

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 15,641 ÷ 35,509 = 0.44

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 15,641 ÷ 31,147 = 0.50

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Texas Instruments Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 35,509 32,348 27,207 24,676 19,351
Stockholders’ equity 16,903 16,897 14,577 13,333 9,187
Solvency Ratio
Financial leverage1 2.10 1.91 1.87 1.85 2.11
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 31,147 27,986 22,845 20,314 14,989
Adjusted stockholders’ equity 12,541 12,535 10,215 8,971 4,825
Solvency Ratio
Adjusted financial leverage2 2.48 2.23 2.24 2.26 3.11

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 35,509 ÷ 16,903 = 2.10

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 31,147 ÷ 12,541 = 2.48

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Texas Instruments Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 4,799 6,510 8,749 7,769 5,595
Stockholders’ equity 16,903 16,897 14,577 13,333 9,187
Profitability Ratio
ROE1 28.39% 38.53% 60.02% 58.27% 60.90%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 4,799 6,510 8,749 7,769 5,595
Adjusted stockholders’ equity 12,541 12,535 10,215 8,971 4,825
Profitability Ratio
Adjusted ROE2 38.27% 51.93% 85.65% 86.60% 115.96%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,799 ÷ 16,903 = 28.39%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 4,799 ÷ 12,541 = 38.27%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Texas Instruments Inc. adjusted ROE deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 4,799 6,510 8,749 7,769 5,595
Total assets 35,509 32,348 27,207 24,676 19,351
Profitability Ratio
ROA1 13.51% 20.12% 32.16% 31.48% 28.91%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 4,799 6,510 8,749 7,769 5,595
Adjusted total assets 31,147 27,986 22,845 20,314 14,989
Profitability Ratio
Adjusted ROA2 15.41% 23.26% 38.30% 38.24% 37.33%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,799 ÷ 35,509 = 13.51%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 4,799 ÷ 31,147 = 15.41%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Texas Instruments Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.