Broadcom Vs Texas Instruments Financial Comparison

Created by Bhavin Gandhi [email protected] May 31st, 2009

  Overview

of Broadcom Corporation   Overview of Texas Instruments, Inc.   Business comparison   Financial Statement’s comparison   Financial Ratio comparison   Conclusion   Questions

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  Address:   URL:   Founded:   Ticker:   Employees:

5300 California Avenue, Irvine, CA 92617 http://www.broadcom.com August, 1991 BRCM 7,402

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  Broadband

Communications   Enterprise Networking   Mobile & Wireless

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  Address:   URL:   Founded:   Ticker:   Employees:

12500 Texas Instruments Blvd, Dallas, TX 75266 www.ti.com 1972 TXN 29,537

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  Communications   Industrial   Consumer

Electronics

  Computing   Automotive   Education

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Broadcom Corp - 2008 Broadband Communication

Enterprise Networking

Mobile and Wireless

Texas Instruments - 2008 Communications

Computing

Industrial

Consumer

Automotive

Education

6% 36%

37%

48%

10%

27%

4%

10%

22%

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Broadcom Corp - 2008 Asia

Europe

USA

Others

Texas Instruments - 2008 Asia

Europe

1%

USA

Japan

Others

3% 10%

30% 13% 60%

10%

15%

59%

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Broadcom’s Common-sized Balance Sheet Bhavin Gandhi: [email protected]

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Broadcom’s Common-sized Income Statement

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Texas Instruments’ Common-sized Balance Sheet Bhavin Gandhi: [email protected]

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Texas Instruments’ Common-sized Income Statement

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Broadcom Corporation

Texas Instruments, Inc.

6000

20000

5000 4000

15000

3000 2000

10000

1000 0

5000 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

-1000 -2000

0 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999

-3000 -4000

-5000 Sales

Assets

Net Income

Sales

Assets

Net Income

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Broadcom Corporation

Texas Instruments, Inc.

5000

16000

4500

14000

4000 12000 3500 10000

3000 2500

8000

2000

6000

1500 4000 1000 2000

500 0

0 2008

2007 Revenue

2006

2005 R&D

2004

2008

2007 Revenue

2006

2005

2004

R&D

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Quick ratio comparison

Current ratio comparison

5.00

6.00

4.50 5.00

4.00 3.50 Current Ratio

4.00

Quick Ratio

3.00 2.50 2.00

3.00

2.00

1.50 1.00

1.00

0.50 0.00

2008

2007

2006

2005

2004

Broadcom

3.17

3.69

4.51

3.40

2.78

Texas Instruments

2.25

2.30

2.64

2.94

4.08

0.00

2008

2007

2006

2005

2004

Broadcom

3.84

4.18

4.94

3.90

3.17

Texas Instruments

3.78

3.42

3.78

3.96

5.33

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Days’ sales outstanding (DSO) comparison

Days sales of inventory (DSI) comparison

60.00

90.00 80.00

50.00 70.00 60.00 50.00

DSI

DSO

40.00

30.00

40.00 20.00

30.00 20.00

10.00 10.00 0.00

0.00

2008

2007

2006

2005

2004

29.17

35.66

38.10

42.00

31.19

Broadcom

Texas Instruments 26.66

45.96

45.42

48.77

48.82

Broadcom

2008

2007

2006

2005

2004

60.38

46.08

41.22

56.02

39.13

Texas Instruments 80.22

80.04

74.97

68.45

67.84

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Return on assets comparison

Return on equity comparison

35.00

40.00

30.00

35.00 30.00 25.00

Percentage

Percentage

25.00 20.00 15.00

20.00 15.00

10.00

10.00

5.00 0.00

5.00 0.00

2008

2007

2006

2005

2004

4.89

4.41

7.77

9.78

6.00

Broadcom

Texas Instruments 16.10

20.98

30.76

15.43

10.76

Broadcom

2008

2007

2006

2005

2004

5.95

5.29

9.04

11.69

7.33

Texas Instruments 20.59

26.64

37.72

19.47

13.42

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Return on sales comparison 35.00

30.00

ROS in percentage

25.00

20.00

15.00

10.00

5.00

0.00

2008

2007

2006

2005

2004

Broadcom

4.61

5.65

10.33

13.74

7.21

Texas Instruments

15.36

19.20

30.06

18.84

15.17

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Debt to equity ratio comparison 0.30

0.25

D/E - ratio

0.20

0.15

0.10

0.05

0.00

2008

2007

2006

2005

2004

Broadcom

0.22

0.20

0.16

0.19

0.22

Texas Instruments

0.28

0.27

0.23

0.26

0.25

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Earnings per share (EPS) comparison 3 2 1 0 Amount in dollars

-1 -2 -3 -4 -5 -6 -7 -8

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Broadcom

0.21

-2.08

-7.2

-5.56

-2.95

0.33

0.66

0.64

0.37

0.41

Texas Instruments

0.83

1.73

-0.17

-0.27

0.6

0.9

1.3

1.66

1.83

1.45

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  Inflation

in semiconductor industry   Increasing cost of manufacturing   Growing importance of Consumer market   Texas Instruments proves to be the winner

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Contact Details: Bhavin Gandhi [email protected]