The business behind the dividend
| Measure | TXN | Median | Formula |
|---|---|---|---|
| Return on equity | 30.7% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 19.9% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $2.37bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $2.60bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 34.1% | 15.0% | Operating income ÷ revenue |
| Net margin | 28.3% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.86x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 11.09x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 4.35x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.28x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 1.43x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 30.7% | 28.4% | 38.5% | 60.0% | 58.3% | 60.9% | 56.3% | 62.0% | 35.6% | 34.3% | 38.5% |
| Return on capital employed | 19.9% | 17.9% | 26.1% | 43.5% | 42.5% | 36.9% | 38.9% | 47.7% | 42.2% | 34.5% | 36.9% |
| Operating margin | 34.1% | 34.9% | 41.8% | 50.6% | 48.8% | 40.8% | 39.8% | 42.5% | 40.7% | 36.3% | 40.7% |
| Net margin | 28.3% | 30.7% | 37.2% | 43.7% | 42.4% | 38.7% | 34.9% | 35.4% | 24.6% | 26.9% | 34.9% |
| Debt to equity | 0.86x | 0.80x | 0.66x | 0.60x | 0.58x | 0.74x | 0.65x | 0.56x | 0.39x | 0.34x | 0.60x |
| Current ratio | 4.35x | 4.12x | 4.55x | 4.70x | 5.33x | 4.28x | 4.13x | 3.27x | 3.87x | 3.29x | 4.13x |
| Cash conversion | 1.43x | 1.32x | 0.99x | 1.00x | 1.13x | 1.10x | 1.33x | 1.29x | 1.46x | 1.28x | 1.28x |
How it compares in technology
Among the 42 technology companies here measured on free cash flow, Texas Instruments pays out less than 2 of them. The median for that group is 28.6%, against this company’s 192.0%.
Closest on free cash flow
- Universal Display Corp \Pa\ (OLED) 55.4%
- Kulicke & Soffa Industries (KLIC) 56.1%
- Hewlett Packard Enterprise (HPE) 109.1%
- CCC Intelligent Solutions Holdings (CCC) 302.4%
Same sector and same denominator, so the figures are comparable. All 46 in technology →