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Financial objectives
| We have three financial objectives that we seek to regularly achieve at TI and that should allow us to return value to our shareholders: |
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Grow revenue faster than our markets
Grow earnings per share faster than revenue
Use capital efficiently
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Overall, we've made steady progress on each of these metrics over the last several years.
For the first objective, we have gained share in Analog in four of the last six years, while our progress in Embedded Processing has been even stronger, with share gains in five of the last six years.
In Analog, we continue to increase our strength with an expanded product portfolio; more funding for R&D; more manufacturing capacity, including the industry's first 300-millimeter analog wafer fab; and a large and growing sales network. In high-performance analog and power management, we've shown a proven ability to outpace the overall analog market. The application-specific piece of our Analog operations, or HVAL, turned the corner in 2009 and is now also contributing to overall Analog growth.
We've also built strength in Embedded Processing, where DSPs and microcontrollers have exhibited growth and share gains.
In 2010, each of our core businesses significantly outpaced their respective markets.
For the second objective, we have grown our earnings per share (EPS) faster than revenue for four of the last six years. This growth has resulted from several factors including continuing stock repurchases that have allowed us to raise our EPS by reducing the number of shares that are outstanding.
For the third objective, TI has seen fairly steady increases in our return on invested capital (ROIC) over the last decade. While the recession of late 2008 and 2009 took its toll, TI's return on invested on capital rebounded in 2010 with a record ROIC of 31 percent. Importantly, over the last decade, we have seen a steady improvement in this metric compared with our peer group, with TI ranking in the top quartile over the last few years.
The combination of higher profitability and better capital efficiency has consistently generated strong cash flow enabling us to fund future growth and return value directly to shareholders in the form of dividends and stock repurchases. In 2010, cash flow from operations totaled $3.82 billion.
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