In: Finance
i want to know about the financial summary/stock purchase recommendation of the texas instrument inc.
Financial Summary of Texas Instruments Inc. year ended 2018
2018 | ||
Cash flows from operating activities: | ||
Net income | $ | 5,580 |
Adjustments to Net income: | ||
Depreciation | 590 | |
Amortization of acquisition-related intangibles | 318 | |
Amortization of capitalized software | 46 | |
Stock compensation | 232 | |
Gains on sales of assets | (3) | |
Deferred income taxes | (105) | |
Increase (decrease) from changes in: | ||
Accounts receivable | 71 | |
Inventories | (282) | |
Prepaid expenses and other current assets | 669 | |
Accounts payable and accrued expenses | (7) | |
Accrued compensation | (7) | |
Income taxes payable | 158 | |
Changes in funded status of retirement plans | 36 | |
Other | (107) | |
Cash flows from operating activities | 7,189 | |
Cash flows from investing activities: | ||
Capital expenditures | (1,131) | |
Proceeds from asset sales | 9 | |
Purchases of short-term investments | (5,641) | |
Proceeds from short-term investments | 6,708 | |
Other | (23) | |
Cash flows from investing activities | (78) | |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 1,500 | |
Repayment of debt | (500) | |
Dividends paid | (2,555) | |
Stock repurchases | (5,100) | |
Proceeds from common stock transactions | 373 | |
Other | (47) | |
Cash flows from financing activities | (6,329) | |
Net change in Cash and cash equivalents | 782 | |
Cash and cash equivalents, beginning of period | 1,656 | |
Cash and cash equivalents, end of period | $ | 2,438 |
Stock Purchase recommendation:
Its a 'strong buy recommendation' for Texas Instruments Inc as of 2018 the stock repurchases was reported @ $5,100 (in million dollars). The cash dividends declared are showing a rise from Q1-2018 to Q3-2019. Also fro the past four quarters the dividends declared does not change. This was the result of weighted average shares are declining due to company issuing additional shares that reduce an existing investors proportional ownership which will ideally increase the EPS.