Finc 322 Financial Ratio Analysis project (100 pts) Name__________________________________ Due: 7/15/2022

Submit completed project in Canvas, Assignments, Financial Analysis Project Module.

Calculate the ratios below. Show all your work. Format: Round final answers to one decimal place. Profitability ratios must be in percent. Use Texas
Instrument’s Income Statement and Balance Sheet on pages 2 to 3. You may type or write your report and submit in word, pdf or jpeg file.
Ratio Calculation -Show all work Ratio (in Industry ratio Better/Worse
here, numbers used in the correct (www.cnbc.com) Compare ratio
Liquidity ratios equation (2.5pts each) format) Complete where to industry
1.5 pts each blank. 2 pts each 1 point each

1.Current ratio = CA/CL 13,68/ 2,569 5.3 3.30 worse

2.Quick Ratio = (CA-Inventory)/CL (13,685-1,910)/2,569 4.6 1.4x better
3.Cash ratio = Cash/Current Liabilities 4,631/ 2,569 1.8 .90x worse
Asset Management ratios
3.Asset Turnover = Net Sales/Total Assets 18,344/ 24,413 0.8 0.59 better
4.Inventory Turnover = COGS/Inventory 5,156/ 1,910 2.7 3.37 worse
5.Accounts Receivable Turnover = Net Sales/Accounts 18,344/1,701 10.8 6.4x better
receivables
Solvency ratios
6. Long Term Debt/ Total Equity 7,241/24,413 0.03 29.8% worse
7. Operating Income/Interest on debt 9,014/8,919 1.0 29.90 worse
Profitability ratios
8. Return on Equity = Net Income/Total Equity 7,736/13,333 58% 19.0% Worse
9. Return on Assets= Net Income/Total Assets 7,736/24,413 32% 19.46 worse
10. Gross Margin = Gross profit/Net Sales 13,148/18,344 72% 54.1% worse
11. Profit Margin=Net Income/Net Sales 18,344/18,344 100% 27.0% worse
Current Market values on date of submission. 4 pts each. (32pts) Get input (#12 to 15) from either www.finance.yahoo.com or www.cnbc.com
12. Stock Price (Date accessed: 07/15/2022 160.54
)
13. P/E 18.36
14. Market Cap 148.039 Billion
15. Beta 0.97
16.( 6 pts). Calculate the required return (R) using CAPM 0.0175+(0.97*0.065) = 0.08 or 8%
Assume: Risk-free rate=1.75% and Market risk premium
(MRP)=6.5%. Show all work.
R = Risk free rate + (beta X MRP)
17. Basic EPS (get from Income Statement) 8.38

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Finc 322 Financial Ratio Analysis project (100 pts) Name__________________________________ Due: 7/15/2022
Submit completed project in Canvas, Assignments, Financial Analysis Project Module.
18. (6 pts) Calculate Price using P/E multiple. Show work 153.49
Price = P/E x Basic EPS
Texas Instruments Incorporated (NasdaqGS:TXN) Source:cnbc.com Date: 6.13.2022

INCOME STATEMENT for Fiscal period ending 12/31/2021

NET SALES OR REVENUES 18344
Cost of Goods Sold (Excl Depreciation) 5156
Depreciation, Depletion And Amortization 954
Depreciation 755
Amortization of Intangibles 199
GROSS INCOME 12234
Selling, General & Admin Expenses 3220
Research and Development Expense 1554
OPERATING INCOME 9014
Extraordinary Credit - Pretax --
Extraordinary Charge - Pretax -104
Other Income/Expenses - Net 193
Interest Expense On Debt 184
PRETAX INCOME 8919
Income Taxes -1150
Current Domestic Income Tax 966
Current Foreign Income Tax 169
Deferred Domestic Income Tax -23
Deferred Foreign Income Tax 38
After Tax Other Income/Expense -33
NET INCOME BEFORE EXTRA ITEMS/PREFERRED DIVIDIENDS 7736
Extra Items & Gain/Loss Sales of Assets 0
NET INCOME USED TO CALCULATE BASIC EARNINGS PER SHARE 7736

Per Share Items

Basic EPS $8.38
Weighted Avg. Basic Shares Out. 923.0

Diluted EPS $8.36

Weighted Avg. Diluted Shares Out. 936.0

Dividends per share $4.21

Dividend payout ratio 50.0%

Values are displayed in Millions except for earnings per share and where
noted

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Finc 322 Financial Ratio Analysis project (100 pts) Name__________________________________ Due: 7/15/2022
Submit completed project in Canvas, Assignments, Financial Analysis Project Module.

12/31/202
BALANCE SHEET as of 1
ASSETS   LIABILITIES  

Cash 4,631 Accounts Payable 653

Short Term Investments 5,108 Short Term Debt & Current Portion of Long-Term Debt 500

Receivables - Net 1,701 Accrued Payroll 775

Raw Materials 245 Income Taxes Payable 121

Work in Progress 1,067 Other Current Liabilities 520

Finished Goods 598 CURRENT LIABILITIES - TOTAL 2,569

Inventories - Total 1,910 Long Term Debt 7,241

Other Current Assets 335 Provision for Risks and Charges 79

13,6
CURRENT ASSETS - TOTAL 85 Deferred Income 395

Land 132 Deferred Taxes - Credit 87

Buildings 3,490 Deferred Taxes - Debit 263

Machinery & Equipment 4,236 DEFERRED TAXES (176)

Other Property, Plant & Equipment 465 Other Liabilities 972

Property, Plant and Equipment - Gross 8,323 TOTAL LIABILITIES 11,080

(2,7
Accumulated Depreciation 17) EQUITY  

Property, Plant and Equipment - Net 5,606 Common Stock 1,741

Investments in Associated Companies 42 Capital Surplus 2,630

Other Investments - Other Appropriated Reserves (155)

Deferred Charges 392 Retained Earnings 45,919

Other tangible Assets 241 Unrealized Foreign Exchange Gain/Loss (2)

Total Intangible Other Assets - Net 4,447 Treasury Stock (36,800)

Other Assets - Total 5,343 COMMON EQUITY 13,333

24,41
TOTAL ASSETS 3 TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY 24,413
Values are displayed in millions in U.S. dollars.