TXNNEUTRAL

Return on Equity (ROE)

32.3%

Higher than 100% of TECHNOLOGY sector peers

Updated 56h ago

Sector Performance

100th percentile

TXN

32.3%

Sector Median

25.2%

Sector Avg

24.5%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders’ equity—essentially, the return on the money investors have put in.

TXN’s current ROE of 32.3% means for every dollar of equity, the company earns about 32 cents in profit. This is well above the TECHNOLOGY sector median of 25.2%, placing TXN at the 100th percentile among its peers, meaning it outperforms every other company in its sector on this metric. However, the year-over-year change and quarter-over-quarter change are both listed as N/A, and the trend over the last eight quarters is also unavailable, so no direction can be inferred from historical movement. Given the high absolute level but no trend data, the metric offers a strong snapshot of efficiency but carries uncertainty about sustainability. This high ROE level supports the overall NEUTRAL verdict by confirming current solid performance, while the lack of trend prevents it from justifying a bullish or bearish tilt.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TXN?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does TXN's Return on Equity (ROE) compare to its sector?

TXN's Return on Equity (ROE) of 32.3% compares to a TECHNOLOGY sector median of 25.2%, placing it in the 100th percentile.

Who are TXN's closest peers by Return on Equity (ROE)?

The closest TECHNOLOGY peers by Return on Equity (ROE) include: CSCO (25.2%), NOW (16.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.