Texas Instruments TEXAS Bond
| TXN Stock | USD 177.48 2.23 1.27% |
Texas Instruments holds a debt-to-equity ratio of 0.547. At this time, Texas Instruments' Debt To Assets are very stable compared to the past year. As of the 28th of April 2024, Long Term Debt To Capitalization is likely to grow to 0.41, while Short Term Debt is likely to drop about 420.6 M. Texas Instruments' financial risk is the risk to Texas Instruments stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
Texas Instruments' liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Texas Instruments' cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Texas Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Texas Instruments' stakeholders.
For most companies, including Texas Instruments, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for the executing running Texas Instruments Incorporated the most critical issue when dealing with liquidity needs is whether the current assets are properly aligned with its current liabilities. If not, management will need to obtain alternative financing to ensure that there are always enough cash equivalents on the balance sheet in reserve to pay for obligations.
Price Book 8.96 | Book Value 18.663 | Operating Margin 0.3166 | Profit Margin 0.3516 | Return On Assets 0.1276 |
Texas |
Given the importance of Texas Instruments' capital structure, the first step in the capital decision process is for the management of Texas Instruments to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Texas Instruments Incorporated to issue bonds at a reasonable cost.
| Popular Name | Texas Instruments TEXAS INSTRS INC |
| Specialization | Semiconductors & Semiconductor Equipment |
| Equity ISIN Code | US8825081040 |
| Bond Issue ISIN Code | US882508BD51 |
Texas Instruments Outstanding Bond Obligations
| TEXAS INSTRUMENTS INC | US882508BG82 | Details | |
| TEXAS INSTRUMENTS INC | US882508BH65 | Details | |
| TEXAS INSTRUMENTS INC | US882508BJ22 | Details | |
| TXN 27 15 SEP 51 | US882508BM50 | Details | |
| TXN 46 15 FEB 28 | US882508BV59 | Details | |
| TEXAS INSTRS INC | US882508BB95 | Details | |
| TEXAS INSTRS INC | US882508BD51 | Details | |
| TEXAS INSTRS INC | US882508BC78 | Details | |
| TEXAS INSTRUMENTS INC | US882508BF00 | Details | |
| TXN 5 14 MAR 53 | US882508CC69 | Details | |
| TXN 49 14 MAR 33 | US882508CB86 | Details |
Understaning Texas Instruments Use of Financial Leverage
Texas Instruments financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Texas Instruments's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Texas Instruments assets, the company is considered highly leveraged. Understanding the composition and structure of overall Texas Instruments debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it. Financial leverage can amplify the potential profits to Texas Instruments' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Texas Instruments' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 11.2 B | 11.8 B | |
| Net Debt | 8.3 B | 8.7 B | |
| Short Term Debt | 599 M | 420.6 M | |
| Long Term Debt | 10.6 B | 11.2 B | |
| Long Term Debt Total | 9.5 B | 5.2 B | |
| Short and Long Term Debt | 599 M | 522.4 M | |
| Net Debt To EBITDA | 0.92 | 0.96 | |
| Debt To Equity | 0.66 | 0.70 | |
| Interest Debt Per Share | 12.75 | 13.39 | |
| Debt To Assets | 0.35 | 0.36 | |
| Long Term Debt To Capitalization | 0.39 | 0.41 | |
| Total Debt To Capitalization | 0.40 | 0.42 | |
| Debt Equity Ratio | 0.66 | 0.70 | |
| Debt Ratio | 0.35 | 0.36 | |
| Cash Flow To Debt Ratio | 0.57 | 0.54 |
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When determining whether Texas Instruments offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Texas Instruments' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Texas Instruments Incorporated Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Texas Instruments Incorporated Stock:Check out the analysis of Texas Instruments Fundamentals Over Time. You can also try the Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Complementary Tools for Texas Stock analysis
When running Texas Instruments' price analysis, check to measure Texas Instruments' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Texas Instruments is operating at the current time. Most of Texas Instruments' value examination focuses on studying past and present price action to predict the probability of Texas Instruments' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Texas Instruments' price. Additionally, you may evaluate how the addition of Texas Instruments to your portfolios can decrease your overall portfolio volatility.
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Is Texas Instruments' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Texas Instruments. If investors know Texas will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Texas Instruments listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.35) | Dividend Share 5.08 | Earnings Share 6.41 | Revenue Per Share 18.488 | Quarterly Revenue Growth (0.16) |
The market value of Texas Instruments is measured differently than its book value, which is the value of Texas that is recorded on the company's balance sheet. Investors also form their own opinion of Texas Instruments' value that differs from its market value or its book value, called intrinsic value, which is Texas Instruments' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Texas Instruments' market value can be influenced by many factors that don't directly affect Texas Instruments' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Texas Instruments' value and its price as these two are different measures arrived at by different means. Investors typically determine if Texas Instruments is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Texas Instruments' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.