Texas Instruments Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	6,510)	8,749)	7,769)	5,595)	5,017)
Add: Available-for-sale investments	5)	(3)	—)	—)	—)
Net income (adjusted)	6,515)	8,746)	7,769)	5,595)	5,017)

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Texas Instruments Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	37.16%	43.68%	42.35%	38.69%	34.88%
Adjusted net profit margin	37.19%	43.67%	42.35%	38.69%	34.88%
Return on Equity (ROE)
Reported ROE	38.53%	60.02%	58.27%	60.90%	56.33%
Adjusted ROE	38.56%	60.00%	58.27%	60.90%	56.33%
Return on Assets (ROA)
Reported ROA	20.12%	32.16%	31.48%	28.91%	27.84%
Adjusted ROA	20.14%	32.15%	31.48%	28.91%	27.84%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Texas Instruments Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Texas Instruments Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Texas Instruments Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Revenue	17,519)	20,028)	18,344)	14,461)	14,383)
Profitability Ratio
Net profit margin¹	37.16%	43.68%	42.35%	38.69%	34.88%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,515)	8,746)	7,769)	5,595)	5,017)
Revenue	17,519)	20,028)	18,344)	14,461)	14,383)
Profitability Ratio
Adjusted net profit margin²	37.19%	43.67%	42.35%	38.69%	34.88%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 6,510 ÷ 17,519 = 37.16%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 6,515 ÷ 17,519 = 37.19%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Texas Instruments Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Stockholders’ equity	16,897)	14,577)	13,333)	9,187)	8,907)
Profitability Ratio
ROE¹	38.53%	60.02%	58.27%	60.90%	56.33%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,515)	8,746)	7,769)	5,595)	5,017)
Stockholders’ equity	16,897)	14,577)	13,333)	9,187)	8,907)
Profitability Ratio
Adjusted ROE²	38.56%	60.00%	58.27%	60.90%	56.33%

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 6,510 ÷ 16,897 = 38.53%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 6,515 ÷ 16,897 = 38.56%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Texas Instruments Inc. adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	6,510)	8,749)	7,769)	5,595)	5,017)
Total assets	32,348)	27,207)	24,676)	19,351)	18,018)
Profitability Ratio
ROA¹	20.12%	32.16%	31.48%	28.91%	27.84%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	6,515)	8,746)	7,769)	5,595)	5,017)
Total assets	32,348)	27,207)	24,676)	19,351)	18,018)
Profitability Ratio
Adjusted ROA²	20.14%	32.15%	31.48%	28.91%	27.84%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 6,510 ÷ 32,348 = 20.12%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 6,515 ÷ 32,348 = 20.14%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Texas Instruments Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Texas Instruments Inc. (NASDAQ:TXN)

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