TXN (Texas Instruments) ROCE %: 23.66% (As of Mar. 2026)

What is Texas Instruments ROCE %?

Texas Instruments TXN -0.28% 81 ROCE % is 23.66% as of Mar. 2026. GuruFocus rates TXN with a GF Score™ of 81/100 and a GF Value™ of $212.39 (Significantly Overvalued). The stock has 10 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Texas Instruments's annualized ROCE % for the quarter that ended in Mar. 2026 was 23.66%.

Texas Instruments (NAS:TXN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Texas Instruments ROCE % Related Terms

Texas Instruments ROCE % Historical Data

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The historical data trend for Texas Instruments's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Texas Instruments ROCE % Chart

Texas Instruments Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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46.60

44.23

29.19

19.58

19.76

Texas Instruments Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															17.79	20.23	21.45	19.12	23.66

81GF Score

Texas Instruments Inc TXN

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Texas Instruments ROCE % Calculation

Texas Instruments's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	6253	/	( ( (35509 - 3643)	+	(34585 - 3159) )	/ 2 )
	=	6253	/	( (31866	+	31426)	/ 2 )
	=	6253	/	31646
	=	19.76 %

Texas Instruments's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	7420	/	( ( (34585 - 3159)	+	(34393 - 3096) )	/ 2 )
	=	7420	/	( ( 31426	+	31297 )	/ 2 )
	=	7420	/	31361.5
	=	23.66 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 23.66% mean?

Texas Instruments (TXN) has a ROCE % of 23.66% as of Mar. 2026.

Is Texas Instruments' ROCE % too high?

Texas Instruments' current ROCE % is 23.66%. The Semiconductors industry median ROCE % is 4.72. Texas Instruments' value of 23.66% is 401.3% above this industry median. Overall, Texas Instruments has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Texas Instruments' ROCE % compare to QCOM and ADI?

Texas Instruments' ROCE % of 23.66% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.72. Texas Instruments' value of 23.66% is 401.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Semiconductors company?

The median ROCE % among Semiconductors companies is 4.72, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Instruments's current ROCE % of 23.66% is 401.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Instruments's current ROCE % is 23.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Texas Instruments stock overvalued right now?

Based on GuruFocus' analysis, Texas Instruments (TXN) is currently considered Significantly Overvalued. The stock's GF Value™ is $212.39, compared to a current price of $303.50 — trading 42.9% above its estimated fair value. The current ROCE % is 23.66% and 401.3% above the Semiconductors industry median of 4.72. Texas Instruments' overall GF Score™ is 81/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Texas Instruments (TXN), the current ROCE % is 23.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Texas Instruments (TXN) Overvalued in 2026?

Based on GuruFocus' analysis, Texas Instruments stock appears to be overvalued. The current stock price of $303.50 is trading 42.9% above its estimated GF Value™ of $212.39. GuruFocus considers Texas Instruments to be Significantly Overvalued.

Key valuation signals for TXN:

ROCE %: 23.66%
GF Value™: $212.39 vs. price of $303.50 (42.9% above fair value)
GF Score™: 81/100 with 10 warning signs
Industry Position: 401.3% above the Semiconductors median

No single metric tells the full story. See the TXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Texas Instruments Business Description

Industry Technology Semiconductors

Comparable Companies QCOM ADI MRVL NXPI MPWR ALAB CBRS MCHP ON GFS NVDA AVGO TPE:2330 XKRX:000660 MU AMD INTC TSE:285A TPE:2454 XTER:IFX

Other Exchanges TXN:Mexico 1TXN:Italy 0R2H:UK TII:Germany TXN:Canada TEXA34:Brazil TXN:Austria TXN:Argentina

Address 12500 TI Boulevard, Dallas, TX, USA, 75243

Website https://www.ti.com

Dallas-based Texas Instruments generates over 95% of its revenue from semiconductors and the remainder from its well-known calculators. Texas Instruments is the world's largest maker of analog chips, which are used to process real-world signals such as sound and power. Texas Instruments also has a leading market share position in processors and microcontrollers used in a wide variety of electronics applications.

81GF Score

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$303.50

Price

$212.39

GF Value

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