Business Analysis of Texas Instruments

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Texas Instruments

TEXAS INSTRUMENTS

Business Overview

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The company operates through two segments, Analog and Embedded Processing. The Analog segment offers high volume analog and logic products for automotive safety devices, touch screen controllers, low voltage motor drivers, and integrated motor controllers; and power products to manage power requirements using battery management solutions, portable power components, power supply controls, and point-of-load products. This segment also provides high performance analog products, such as high-speed data converters, amplifiers, sensors, high reliability products, interface products, and precision products; and silicon valley analog products, including power management, data converter, interface, and operational amplifier products that are used in manufacturing various electronic systems. The Embedded Processing segment offers processors, including digital signal processors and applications processors; microcontrollers, such as self-contained systems with a processor core, memory, and peripherals that are designed to control a set of specific tasks for electronic equipment; and connectivity products that enable electronic equipment to connect and transfer data wirelessly. It also provides DLP products primarily used in projectors to create high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as online. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Texas Instruments

Texas Instruments


R&P Rank: 209
Sector: Technology
Industry:Semiconductor
H.Q Location:Texas
Website: www.ti.com
Company Address:
P.O. BOX 660199, DALLAS TX 75266
Ph:972-995-3773

Business Analysis of Texas Instruments

The Technology Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Texas Instruments compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Texas Instruments to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Texas Instruments with an interactive chart.

  1. Revenue Growth: Texas Instruments reported a revenue growth of 2.8% year-on-year during 2016. Semiconductor Industry grew at 5.9% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Texas Instruments spent 38.4% of its total revenues on COGS. Semiconductor industry average (COGS share of revenue) in the same period was 49.2%
  3. R&D share of Revenues: As a percentage of revenue, Texas Instruments spent 10.2% of its total revenues on R&D. Semiconductor industry average R&D spending in the same period was 18.4%
  4. SG&A share of Revenues: As a percentage of revenue, Texas Instruments spent 13.2% of its total revenues on Sales, Marketing, and General Administration (SG&A). Semiconductor industry average SG&A spending in the same period was 12.4%
  5. Inventory share of Revenues: As a percentage of revenue, Texas Instruments spent 13.4% of its total revenues on Inventories. Semiconductor industry average Inventory spending in the same period was 12.5%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Texas Instruments invested 3.0% of its total revenues on Accounts Payable (A/P) Semiconductor industry average Accounts Payable investment in the same period was 8.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Texas Instruments invested 9.5% of its total revenues on Accounts Receivable (A/R). Semiconductor industry average Accounts Receivable investment in the same period was 12.3%
  8. PP&E share of Revenues: As a percentage of revenue, Texas Instruments invested 18.8% of its total revenues on Property, Plants, and Equipments (PP&E). Semiconductor industry average PPE investment in the same period was 36.5%
  9. Intangibles share of Revenues: As a percentage of revenue, Texas Instruments invested 42.5% of its total revenues on Intangibles. Semiconductor industry average Intangibles investment in the same period was 56.1%
  10. Net Margins: Texas Instruments Net Margins in the year 2016 were 26.9%. Semiconductor industry average Net Margins in the same period were 11.6%

Sector and Industry Association of Texas Instruments

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Texas Instruments is associated with Technology Sector and Semiconductor Industry.

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

  • Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
  • Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
  • Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
  • IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
  • Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
  • Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
  • Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

Industry Ranking of Texas Instruments

With $13.4 billion revenues, Texas Instruments ranked number 3 of all the companies in the US Semiconductor industry. There were a total of 70 public companies in the US Semiconductor industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Semiconductor industry by revenues during 2016 were:

  1. Intel ($59.4 billion)
  2. Qualcomm ($23.6 billion)
  3. Texas Instruments ($13.4 billion)
  4. Broadcom ($13.2 billion)
  5. Micron Technology ($12.4 billion)
  6. Applied Materials ($10.8 billion)
  7. Lam Research ($5.9 billion)
  8. Nvidia ($5 billion)
  9. AMD ($4.3 billion)
  10. On Semiconductor ($3.9 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Texas Instrumentsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of texas-instruments

Intel (INTC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Intel Corp with $59 billion revenues in the year 2016 was the number 1 Semiconductor company. Read this report to know the top competitors of Intel and identify growth and cost optimization opportunities of Intel

Qualcomm (QCOM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Qualcomm Inc with $24 billion revenues in the year 2016 was the number 2 Semiconductor company. Read this report to know the top competitors of Qualcomm and identify growth and cost optimization opportunities of Qualcomm

Broadcom (AVGO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Broadcom Ltd with $13 billion revenues in the year 2016 was the number 4 Semiconductor company. Read this report to know the top competitors of Broadcom and identify growth and cost optimization opportunities of Broadcom

Micron Technology (MU) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Micron Technology Inc with $12 billion revenues in the year 2016 was the number 5 Semiconductor company. Read this report to know the top competitors of Micron Technology and identify growth and cost optimization opportunities of Micron Technology

Applied Materials (AMAT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Applied Materials Inc with $11 billion revenues in the year 2016 was the number 6 Semiconductor company. Read this report to know the top competitors of Applied Materials and identify growth and cost optimization opportunities of Applied Materials

Lam Research (LRCX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Lam Research Corp with $6 billion revenues in the year 2016 was the number 7 Semiconductor company. Read this report to know the top competitors of Lam Research and identify growth and cost optimization opportunities of Lam Research

Revenues Analysis

Texas Instruments (TXN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Texas Instruments Inc (TXN) from 2012 to 2016. Texas Instruments generated a total of $13.4 billion revenues during 2016. Texas Instruments reported a revenue growth of 2.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Texas Instruments (TXN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Texas Instruments Inc (TXN) from 2002 to 2016. Texas Instruments generated a total of $13.4 billion revenues during 2016. Texas Instruments reported a revenue growth of 2.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Texas Instruments (TXN) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Texas Instruments Inc (TXN) revenue growth with Semiconductor industry growth during the last five years from 2012 to 2016. Texas Instruments reported a revenue growth of 2.8% year-over-year during 2016. The Semiconductor industry growth was 5.9% year-over-year during 2016. Texas Instruments growth was slower than the industry during 2016.

Profit Analysis