Stock Analysis on Net
Stock Analysis on Net

Texas Instruments Inc. (NASDAQ:TXN)

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity 

Texas Instruments Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Current portion of long-term debt 1.45 2.11 1.85 1.84 2.03
Accounts payable 2.19 2.31 2.48 3.13 2.31
Accrued compensation 2.40 2.36 2.58 2.94 3.14
Income taxes payable 0.19 0.45 0.53 0.69 0.49
Accrued capital-related expenditures 0.87 0.99 1.05 0.70 0.00
Other 2.04 2.04 1.76 1.67 2.44
Accrued expenses and other liabilities 2.91% 3.03% 2.82% 2.37% 2.44%
Current liabilities 9.13% 10.26% 10.26% 10.97% 10.41%
Long-term debt, excluding current portion 39.17 36.18 32.84 30.27 29.34
Underfunded retirement plans 0.36 0.31 0.33 0.43 0.32
Deferred tax liabilities 0.19 0.15 0.19 0.24 0.35
Other long-term liabilities 4.09 5.50 4.13 4.51 5.54
Long-term liabilities 43.81% 42.14% 37.50% 35.45% 35.56%
Total liabilities 52.95% 52.40% 47.76% 46.42% 45.97%
Preferred stock, $25 par value; none issued 0.00 0.00 0.00 0.00 0.00
Common stock, $1 par value 5.03 4.90 5.38 6.40 7.06
Paid-in capital 13.04 11.08 10.39 10.85 10.66
Retained earnings 151.04 147.18 161.63 185.07 186.09
Treasury common stock at cost -121.82 -115.17 -124.53 -147.81 -149.13
Accumulated other comprehensive loss, net of taxes (AOCI) -0.25 -0.39 -0.63 -0.93 -0.64
Stockholders’ equity 47.05% 47.60% 52.24% 53.58% 54.03%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2025-12-31), 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).

The composition of liabilities and stockholders’ equity exhibited several notable shifts between 2021 and 2025. Overall, the proportion of total liabilities increased relative to stockholders’ equity over the period, while stockholders’ equity as a percentage of the total decreased.

Current Liabilities
Current liabilities as a percentage of the total initially increased from 10.41% in 2021 to 10.97% in 2022, then remained stable at 10.26% for 2023 and 2024 before decreasing to 9.13% in 2025. Within current liabilities, accounts payable fluctuated, peaking at 3.13% in 2022 before returning to 2.19% in 2025. Accrued compensation consistently decreased, moving from 3.14% to 2.40% over the five-year period. Income taxes payable showed a decline from 0.49% to 0.19%, while accrued capital-related expenditures increased from 0.70% in 2022 to 0.87% in 2025.
Long-Term Liabilities
Long-term liabilities demonstrated a consistent upward trend, increasing from 35.56% in 2021 to 43.81% in 2025. This growth was primarily driven by an increase in long-term debt, excluding the current portion, which rose from 29.34% to 39.17%. Other long-term liabilities also contributed to this increase, though to a lesser extent, fluctuating between 4.51% and 5.50% before settling at 4.09% in 2025. Underfunded retirement plans and deferred tax liabilities remained relatively stable, representing small percentages of the total.
Stockholders’ Equity
Stockholders’ equity experienced a notable decline as a percentage of the total, decreasing from 54.03% in 2021 to 47.05% in 2025. This decrease was largely attributable to a significant reduction in retained earnings, which fell from 186.09% to 151.04%. Treasury stock, represented as a negative value, also increased in magnitude, from -149.13% to -121.82%. Common stock and paid-in capital showed modest fluctuations, while accumulated other comprehensive loss decreased, becoming less negative over time.

The increasing proportion of long-term debt suggests a greater reliance on financing through debt. The decrease in retained earnings, coupled with the increase in treasury stock, indicates potential share repurchase activity or other distributions to shareholders. The overall shift in the balance sheet composition towards liabilities and away from equity warrants further investigation into the company’s capital structure and financial flexibility.