Aureus
BGood

Texas Instruments Incorporated(TXN)

B

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin14.7%Free Cash Flow / Revenue
Cash Conversion143.0%Operating CF / Net Income
Free Cash Flow$2.6B
Revenue$17.7B
Net Cash-$10.8BNet debt position
Debt / FCF5.4xElevated debt burden
Current Ratio4.35Adequate short-term liquidity
YoY FCF Growth+64.9%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-0.5Elevated debt-to-FCF ratio (5.4x)
→
+0.5Healthy FCF margin with manageable debt (14.7%, 5.4x)
→
+1Strong YoY FCF growth (64.9% YoY)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (14.7%)
  • Excellent cash conversion (143%)
  • Strong liquidity (current ratio: 4.35)
  • Strong YoY FCF growth (+64.9%)
  • FCF trend is improving

Concerns

  • Heavy debt position ($10.8B)
  • High debt-to-FCF ratio (5.4x)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin14.7%
Net Margin28.3%
Operating CF Margin40.5%
CapEx Ratio25.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$10.8BNet debt position
Debt / FCF5.4xElevated debt burden
Current Ratio4.35Strong liquidity
Debt / Equity0.86Low leverage

Quarterly FCF Trend

+64.9% YoYImproving (+64.9%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameTexas Instruments Incorporated
SectorTechnology
Free Cash Flow$2.6B
Revenue$17.7B
Net Income$5.0B
Operating Cash Flow$7.2B
Capital Expenditure$4.5B
FCF Margin14.7%
Cash Conversion Rate143.0%
Net Margin28.3%
Total Debt$14.0B
Total Cash$3.2B
Net Cash-$10.8B
Current Ratio4.35
Debt / Equity0.86
Debt / FCF5.4x
YoY FCF Growth+64.9%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeB
Data SourceYahoo Finance