TEXAS INSTRUMENTS: TXN

Texas Instruments: TXN
Northeastern State University

Table of Contents:

Section I: Company History and Environment A.) Company Profile 3 References 8

Section II: Income Statement and Balance Sheet Analysis A.) Common Size Analysis (B.S. and I.S.) 10 B.) Identification & Explanation of Trends 11 References 12

Section III: Ratio Analysis A.) Ratio Profile 13 References 14 B.) Ratio Table for TXN and Peers 15 C.) Ratio Trends and Comparisons 16

Section IV: Valuation A.) Reformulated Balance Sheet 18 B.) Market Value of TXN Stock (ROPI) 19 C.) Spreadsheet Calculations 20 D.) Assumptions 21 E.) Estimate Price to Forecast Price 22

Section V: Summary and Conclusion A.) Summary 23 B.) Company Financial Appearance 24 References 25

Texas Instruments: TXN

) Company History and Environment

Company History:

Texas Instruments (TI) is a designer and manufacturer of microcontroller semiconductors and two forms of signal processing, analog and digital. It all began when Eugene McDermott, John Erik Jonsson, Patrick Eugene Haggerty, and Cecil H Green founded Texas Instruments in 1930. The company was originally named Geophysical Science, GSI, later it was changed to Coronado Corporation in 1939 before it was finally named Texas Instruments Incorporated in 1951 (History of Innovation).

The founders of Texas Instruments originally created their brand of semiconductors in search for new sources of petroleum. At the time this was a risky move for the four men, most of who left careers at other petroleum industries in search for new opportunities with the purpose of relying on a new form of technology (History of Innovation). Their ideas also helped inspire and create their first commercial product in