Switch to:
Texas Instruments Inc  (NAS:TXN) Effective Interest Rate on Debt %: 2.80% (As of Mar. 2019)

Effective interest rate on debt is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Current Portion of Long-Term Debt. Texas Instruments Inc's annualized positive value of Interest Expense for the quarter that ended in Mar. 2019 was \$152 Mil. Texas Instruments Inc's average total debt for the quarter that ended in Mar. 2019 was \$5,438 Mil. Therefore, Texas Instruments Inc's annualized effective interest rate on debt for the quarter that ended in Mar. 2019 was 2.80%.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Texas Instruments Inc Annual Data

 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Effective Interest Rate on Debt %     1.92 2.06 2.07 2.03 2.73

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Texas Instruments Inc Distribution

* The bar in red indicates where Texas Instruments Inc's Effective Interest Rate on Debt % falls into.

Calculation

Texas Instruments Inc's annualized Effective Interest Rate on Debt for the fiscal year that ended in Dec. 2018 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (A: Dec. 2017 ) + Total Debt  (A: Dec. 2018 )) / 2 ) = -1  *  -125 / ( (4077 + 5068) / 2 ) = -1  *  -125 / 4572.5 = 2.73 %

where

 Total Debt  (A: Dec. 2017 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 3577 + 500 = 4077

 Total Debt  (A: Dec. 2018 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 4319 + 749 = 5068

Texas Instruments Inc's annualized Effective Interest Rate on Debt for the quarter that ended in Mar. 2019 is calculated as

 Effective Interest Rate on Debt = -1  *  Interest Expense / ( (Total Debt  (Q: Dec. 2018 ) + Total Debt  (Q: Mar. 2019 )) / 2 ) = -1  *  -152 / ( (5068 + 5807) / 2 ) = -1  *  -152 / 5437.5 = 2.80 %

where

 Total Debt  (Q: Dec. 2018 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 4319 + 749 = 5068

 Total Debt  (Q: Mar. 2019 ) = Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt = 5057 + 750 = 5807

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual effective interest rate on debt, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2019) interest expense data. Effective Interest Rate on Debt is displayed in the 30-year financial page.

Explanation

Effective interest rate on debt measures the usage rate that a borrower actually pays on a debt.

Related Terms

Headlines

From the Internet

###### Intel Roundup: Roadmap, Mobileye, Security, Semiconductor Sales

- Zacks 2019-05-22 15:34:00

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)