Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Texas Instruments Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
An examination of long-term investment activity ratios reveals consistent declines in asset utilization efficiency between 2021 and 2024, followed by modest improvements in 2025 for some metrics. The company demonstrates decreasing effectiveness in generating revenue from its asset base over the period, though recent figures suggest a potential stabilization.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased substantially from 3.57 in 2021 to 1.38 in 2024, indicating a diminishing ability to generate sales from fixed assets. A slight recovery to 1.44 is observed in 2025, but remains significantly below the 2021 level. This suggests potential overinvestment in fixed assets relative to sales, or a decline in the efficiency with which those assets are used.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- A similar trend is evident when including operating lease and right-of-use assets in the calculation, with the ratio falling from 3.27 in 2021 to 1.29 in 2024. The 2025 value of 1.36 represents a minor increase, but still falls short of earlier performance. This indicates that the inclusion of these lease obligations does not fundamentally alter the observed decline in asset utilization.
- Total Asset Turnover
- The total asset turnover ratio experienced a pronounced decrease from 0.74 in 2021 and 2022 to 0.44 in 2024. This signifies a reduced capacity to generate sales from the company’s entire asset base. A modest increase to 0.51 in 2025 offers a slight indication of improvement, but the ratio remains considerably lower than in previous years.
- Equity Turnover
- The equity turnover ratio also exhibited a downward trend, declining from 1.38 in 2021 to 0.93 in 2024. This suggests a decreasing ability to generate sales from shareholder equity. The ratio increased to 1.09 in 2025, representing a partial recovery, but remains below the initial value. This could indicate a less efficient use of equity financing to drive revenue.
Overall, the observed trends suggest a period of declining asset utilization efficiency. While the 2025 figures indicate potential stabilization or modest improvement for some ratios, further monitoring is necessary to determine if these represent a sustained shift or a temporary fluctuation.
Net Fixed Asset Turnover
Texas Instruments Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Property, plant and equipment | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2025 Calculation
Net fixed asset turnover = Revenue ÷ Property, plant and equipment
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent decline over the five-year period, followed by a slight stabilization. Revenue experienced initial growth but subsequently decreased before showing a modest recovery in the final year. Simultaneously, property, plant, and equipment increased steadily throughout the period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreased from 3.57 in 2021 to 1.38 in 2024, representing a significant reduction in the efficiency with which fixed assets generate revenue. This indicates that the company was generating less revenue for each dollar invested in fixed assets. A slight increase to 1.44 in 2025 suggests a potential stabilization, but the ratio remains considerably lower than its value in 2021.
- Revenue Trend
- Revenue increased from US$18,344 million in 2021 to US$20,028 million in 2022, indicating a period of growth. However, revenue then declined to US$17,519 million in 2023 and further to US$15,641 million in 2024. A partial recovery was observed in 2025, with revenue reaching US$17,682 million. This fluctuating revenue pattern contributes to the observed decline in the net fixed asset turnover ratio.
- Property, Plant, and Equipment Trend
- Property, plant, and equipment exhibited a consistent upward trend, increasing from US$5,141 million in 2021 to US$12,320 million in 2025. This continuous investment in fixed assets, coupled with the fluctuating revenue, explains the decreasing net fixed asset turnover ratio. The company is investing more in fixed assets while revenue generation is not keeping pace, or is even declining.
The combination of increasing fixed assets and fluctuating revenue suggests a potential need to evaluate the efficiency of asset utilization and the effectiveness of capital expenditure decisions. The slight improvement in the net fixed asset turnover ratio in 2025 warrants further investigation to determine if this represents a sustainable trend.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Texas Instruments Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Property, plant and equipment | ||||||
| Operating lease right-of-use asset (included in Other long-term assets) | ||||||
| Property, plant and equipment (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property, plant and equipment (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals a declining trend in net fixed asset turnover, followed by a slight stabilization in the most recent period. Revenue experienced initial growth but subsequently decreased before showing a modest recovery. Simultaneously, property, plant, and equipment, inclusive of operating leases and right-of-use assets, consistently increased throughout the observed timeframe.
- Revenue Trend
- Revenue increased from US$18,344 million in 2021 to US$20,028 million in 2022, representing a growth of approximately 9.2%. However, revenue then decreased to US$17,519 million in 2023 and further to US$15,641 million in 2024, indicating a significant contraction. A slight recovery is observed in 2025, with revenue reaching US$17,682 million.
- Property, Plant, and Equipment (Including Operating Lease, Right-of-Use Asset) Trend
- Property, plant, and equipment exhibited a consistent upward trend throughout the period. From US$5,606 million in 2021, the value increased to US$7,307 million in 2022, US$10,578 million in 2023, US$12,133 million in 2024, and finally to US$13,049 million in 2025. This indicates ongoing investment in fixed assets.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset) Trend
- The net fixed asset turnover ratio decreased substantially over the period. Starting at 3.27 in 2021, the ratio declined to 2.74 in 2022, then to 1.66 in 2023, and further to 1.29 in 2024. A slight increase to 1.36 is noted in 2025, but the ratio remains significantly lower than its initial value. This suggests a decreasing efficiency in generating revenue from fixed assets.
- The decline in the turnover ratio, coupled with increasing fixed assets and fluctuating revenue, suggests that the company is requiring a greater investment in fixed assets to generate each dollar of revenue. The stabilization in 2025 may indicate that the investment strategy is beginning to yield marginally improved results, but further monitoring is warranted.
The observed trends suggest a potential shift in the company’s operational efficiency or a change in its investment strategy. The increasing asset base, combined with declining revenue for a period, resulted in a lower asset turnover. The slight recovery in revenue in 2025 offers a potential signal, but the overall trend remains one of decreasing efficiency in asset utilization.
Total Asset Turnover
Texas Instruments Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2025 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited a declining trend over the observed period, followed by a slight recovery in the most recent year. Initially stable, the ratio decreased significantly before showing a modest increase.
- Total Asset Turnover Trend
- The total asset turnover ratio remained consistent at 0.74 in both 2021 and 2022. A substantial decrease was then observed in 2023, with the ratio falling to 0.54. This downward trend continued into 2024, reaching a low of 0.44. In 2025, the ratio experienced a partial recovery, increasing to 0.51.
The decrease in the total asset turnover ratio suggests a diminishing efficiency in utilizing assets to generate revenue. The company generated less revenue for each dollar of assets held in 2023 and 2024 compared to 2021 and 2022. The slight increase in 2025 indicates a potential stabilization or improvement in asset utilization, but the ratio remains below the levels observed in the earlier years of the period.
- Revenue and Asset Relationship
- While revenue decreased from 2022 to 2024, total assets increased consistently. This divergence likely contributed to the declining asset turnover ratio. The increase in assets without a corresponding increase in revenue indicates that the company may have invested in assets that did not immediately translate into higher sales. The partial revenue recovery in 2025, coupled with a slight decrease in total assets, contributed to the ratio’s improvement.
Further investigation would be needed to understand the reasons behind the asset increases and revenue fluctuations. Factors such as changes in inventory levels, accounts receivable, property, plant, and equipment investments, and overall market conditions could all play a role in these observed trends.
Equity Turnover
Texas Instruments Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2025 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio demonstrates a fluctuating pattern over the five-year period. Initially, the ratio exhibited relative stability before declining and then showing signs of recovery.
- Overall Trend
- The equity turnover ratio began at 1.38 in 2021 and remained relatively consistent at 1.37 in 2022. A noticeable decline occurred in 2023, falling to 1.04, and continued downward in 2024, reaching a low of 0.93. The most recent year, 2025, shows a partial recovery to 1.09.
- Revenue Impact
- Revenue experienced growth from 2021 to 2022, increasing from US$18,344 million to US$20,028 million. However, revenue then decreased in subsequent years, reaching US$15,641 million in 2024 before a modest increase to US$17,682 million in 2025. This revenue pattern correlates with the observed decline and subsequent partial recovery in the equity turnover ratio.
- Stockholders’ Equity Impact
- Stockholders’ equity generally increased from 2021 to 2023, moving from US$13,333 million to US$16,897 million. It remained stable in 2024 at US$16,903 million and then decreased slightly to US$16,273 million in 2025. The increasing equity from 2021-2023 likely contributed to the initial decline in equity turnover, while the stabilization and slight decrease in equity in 2024 and 2025 may have supported the ratio’s partial recovery.
- Ratio Interpretation
- The equity turnover ratio measures how efficiently a company utilizes its equity to generate revenue. A decreasing ratio suggests that the company is generating less revenue for each dollar of equity. The decline from 2022 to 2024 indicates a reduced efficiency in equity utilization. The slight increase in 2025 suggests a potential stabilization or modest improvement in this efficiency, but the ratio remains below the levels observed in 2021 and 2022.
Further investigation into the underlying causes of the revenue fluctuations and equity changes would be necessary to fully understand the drivers behind the observed trends in the equity turnover ratio.