The review of Net Profit Margin witnessed a mixed trend. The Net Profit Margin improved from 34.88% in 2019 to 37.16% in 2023.
The average EBIT Margin for the period under analysis was 44.9% with 2019 and 2022 performing the worst and best, respectively.
In the current year, Texas Instruments Interest Cover was 20.77 times – compared to 2019 when it was 33.66 times.
The Capital Turnover stood at 1.11 times in 2023 from 1.61 in 2019, implying a good performance or Assets of the business in relation to revenue.
Profitability
The revenue of Texas Instruments has shown a mixed trend year on year. The revenue increased by 0.54% between 2019 and 2020 and a further 26.85% increase was recorded between 2020 and 2021. There also occurred a decrease of 12.53% between 2022 and 2023 (the current period).
Texas Instruments performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as its Current ratio/ acid test ratio increase from 4.13:1/3.18:1 to 4.55:1/3.35:1 on the last year. Which implies that the company have enough assets to settle its current liabilities regardless.
Capital Structure
Texas Instruments is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 0.91 in the current year.
