Texas Instruments Incorporated — Earnings Quality Grade F
TXN · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 41 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 13.0%, CFFO 13.2%. Cash follows revenue
Expense Quality
Inventory 6.1% vs COGS 16.1%. Normal
CapEx growth -5.6% vs revenue 13.0%. Normal
SG&A/Gross Profit = 18.4%, excellent (<30%)
Gross margin 57.0%, change -1.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.43. Profits backed by cash
FCF < 50% of Net Income for 2 years
Accruals ratio = -6.2%. Low accruals
Cash $4.9B covers only 35% of debt $14.0B
Balance Sheet Health
Goodwill+Intangibles $4.6B = 28% of equity. Manageable
Debt/EBITDA = 1.7x. Healthy
Other assets -20.7% vs revenue 13.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.67 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08