Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Texas Instruments Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Texas Instruments Inc. gross profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Texas Instruments Inc. operating profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Texas Instruments Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Texas Instruments Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Texas Instruments Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Texas Instruments Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 9,094) | 11,019) | 13,771) | 12,376) | 9,269) | |
| Revenue | 15,641) | 17,519) | 20,028) | 18,344) | 14,461) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 58.14% | 62.90% | 68.76% | 67.47% | 64.10% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 49.35% | 46.12% | 44.93% | 48.25% | 44.53% | |
| Analog Devices Inc. | 57.08% | 64.01% | 62.70% | 61.83% | 65.87% | |
| Applied Materials Inc. | 47.46% | 46.70% | 46.51% | 47.32% | 44.72% | |
| Broadcom Inc. | 63.03% | 68.93% | 66.55% | 61.36% | 56.58% | |
| Intel Corp. | 32.66% | 40.04% | 42.61% | 55.45% | 56.01% | |
| KLA Corp. | 59.97% | 59.81% | 61.00% | 59.93% | 57.81% | |
| Lam Research Corp. | 47.32% | 44.62% | 45.69% | 46.53% | 45.88% | |
| Micron Technology Inc. | 22.35% | -9.11% | 45.18% | 37.62% | 30.57% | |
| Monolithic Power Systems Inc. | 55.32% | 56.07% | 58.44% | 56.75% | 55.18% | |
| NVIDIA Corp. | 72.72% | 56.93% | 64.93% | 62.34% | 61.99% | |
| Qualcomm Inc. | 56.21% | 55.70% | 57.84% | 57.51% | 60.67% | |
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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 9,094 ÷ 15,641 = 58.14%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Texas Instruments Inc. gross profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Texas Instruments Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating profit | 5,465) | 7,331) | 10,140) | 8,960) | 5,894) | |
| Revenue | 15,641) | 17,519) | 20,028) | 18,344) | 14,461) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 34.94% | 41.85% | 50.63% | 48.84% | 40.76% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 7.37% | 1.77% | 5.36% | 22.20% | 14.02% | |
| Analog Devices Inc. | 21.56% | 31.07% | 27.29% | 23.12% | 26.74% | |
| Applied Materials Inc. | 28.95% | 28.86% | 30.20% | 29.87% | 25.37% | |
| Broadcom Inc. | 26.10% | 45.25% | 42.84% | 31.03% | 16.80% | |
| Intel Corp. | -21.99% | 0.17% | 3.70% | 24.62% | 30.41% | |
| KLA Corp. | 34.10% | 38.06% | 39.67% | 35.97% | 25.87% | |
| Lam Research Corp. | 28.61% | 29.69% | 31.24% | 30.64% | 26.62% | |
| Micron Technology Inc. | 5.19% | -36.97% | 31.54% | 22.68% | 14.01% | |
| Monolithic Power Systems Inc. | 24.44% | 26.45% | 29.36% | 21.73% | 18.81% | |
| NVIDIA Corp. | 54.12% | 15.66% | 37.31% | 27.18% | 26.07% | |
| Qualcomm Inc. | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% | |
| Operating Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 21.38% | 18.56% | 27.35% | 28.27% | 25.87% | |
| Operating Profit Margin, Industry | ||||||
| Information Technology | 26.60% | 24.47% | 26.42% | 26.71% | 22.69% | |
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).
1 2024 Calculation
Operating profit margin = 100 × Operating profit ÷ Revenue
= 100 × 5,465 ÷ 15,641 = 34.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Texas Instruments Inc. operating profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Profit Margin
Texas Instruments Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 4,799) | 6,510) | 8,749) | 7,769) | 5,595) | |
| Revenue | 15,641) | 17,519) | 20,028) | 18,344) | 14,461) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 30.68% | 37.16% | 43.68% | 42.35% | 38.69% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 6.36% | 3.77% | 5.59% | 19.24% | 25.50% | |
| Analog Devices Inc. | 17.35% | 26.94% | 22.88% | 19.00% | 21.79% | |
| Applied Materials Inc. | 26.41% | 25.86% | 25.31% | 25.53% | 21.04% | |
| Broadcom Inc. | 11.43% | 39.31% | 34.62% | 24.54% | 12.39% | |
| Intel Corp. | -35.32% | 3.11% | 12.71% | 25.14% | 26.84% | |
| KLA Corp. | 28.15% | 32.27% | 36.06% | 30.04% | 20.96% | |
| Lam Research Corp. | 25.68% | 25.88% | 26.73% | 26.72% | 22.42% | |
| Micron Technology Inc. | 3.10% | -37.54% | 28.24% | 21.16% | 12.54% | |
| Monolithic Power Systems Inc. | 80.95% | 23.47% | 24.39% | 20.04% | 19.47% | |
| NVIDIA Corp. | 48.85% | 16.19% | 36.23% | 25.98% | 25.61% | |
| Qualcomm Inc. | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% | |
| Net Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 15.37% | 17.10% | 25.53% | 25.81% | 23.08% | |
| Net Profit Margin, Industry | ||||||
| Information Technology | 20.72% | 20.39% | 22.45% | 23.61% | 19.67% | |
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).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 4,799 ÷ 15,641 = 30.68%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Texas Instruments Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Texas Instruments Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 2.85% | 1.53% | 2.41% | 42.18% | 42.66% | |
| Analog Devices Inc. | 4.65% | 9.32% | 7.54% | 3.66% | 10.17% | |
| Applied Materials Inc. | 37.77% | 41.94% | 53.51% | 48.08% | 34.21% | |
| Broadcom Inc. | 8.71% | 58.70% | 50.62% | 26.99% | 12.40% | |
| Intel Corp. | -18.89% | 1.60% | 7.90% | 20.83% | 25.79% | |
| KLA Corp. | 82.00% | 116.01% | 237.04% | 61.53% | 45.65% | |
| Lam Research Corp. | 44.82% | 54.94% | 73.35% | 64.85% | 43.53% | |
| Micron Technology Inc. | 1.72% | -13.22% | 17.41% | 13.34% | 6.89% | |
| Monolithic Power Systems Inc. | 56.80% | 20.85% | 26.23% | 19.46% | 17.01% | |
| NVIDIA Corp. | 69.24% | 19.76% | 36.65% | 25.64% | 22.91% | |
| Qualcomm Inc. | 38.60% | 33.51% | 71.81% | 90.88% | 85.54% | |
| ROE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 12.10% | 13.34% | 22.71% | 25.76% | 24.50% | |
| ROE, Industry | ||||||
| Information Technology | 29.38% | 31.90% | 39.03% | 42.37% | 35.70% | |
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).
1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,799 ÷ 16,903 = 28.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Texas Instruments Inc. ROE deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Assets (ROA)
Texas Instruments Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 2.37% | 1.26% | 1.95% | 25.46% | 27.78% | |
| Analog Devices Inc. | 3.39% | 6.79% | 5.46% | 2.66% | 5.69% | |
| Applied Materials Inc. | 20.86% | 22.31% | 24.41% | 22.80% | 16.19% | |
| Broadcom Inc. | 3.56% | 19.33% | 15.69% | 8.91% | 3.90% | |
| Intel Corp. | -9.55% | 0.88% | 4.40% | 11.80% | 13.65% | |
| KLA Corp. | 17.90% | 24.07% | 26.37% | 20.23% | 13.11% | |
| Lam Research Corp. | 20.42% | 24.02% | 26.78% | 24.59% | 15.47% | |
| Micron Technology Inc. | 1.12% | -9.08% | 13.11% | 9.96% | 5.01% | |
| Monolithic Power Systems Inc. | 49.40% | 17.56% | 21.26% | 15.26% | 13.60% | |
| NVIDIA Corp. | 45.28% | 10.61% | 22.07% | 15.05% | 16.15% | |
| Qualcomm Inc. | 18.39% | 14.17% | 26.39% | 21.93% | 14.60% | |
| ROA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 6.62% | 7.45% | 12.71% | 13.62% | 11.81% | |
| ROA, Industry | ||||||
| Information Technology | 11.99% | 12.51% | 14.57% | 14.66% | 11.45% | |
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).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 4,799 ÷ 35,509 = 13.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Texas Instruments Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |