TE Connectivity Ltd (TEL)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,319,000 | 1,661,000 | 1,088,000 | 1,203,000 | 945,000 |
| Short-term investments | US$ in thousands | — | — | — | 7,000 | — |
| Total current liabilities | US$ in thousands | 4,746,000 | 4,463,000 | 4,632,000 | 4,656,000 | 3,690,000 |
| Cash ratio | 0.28 | 0.37 | 0.23 | 0.26 | 0.26 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,319,000K
+ $—K)
÷ $4,746,000K
= 0.28
The cash ratio of TE Connectivity Ltd has fluctuated over the past five years, ranging from 0.23 to 0.37. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term liabilities.
In 2023, the cash ratio was at its highest at 0.37, indicating the company had a relatively higher level of cash and cash equivalents compared to its current liabilities. However, this ratio decreased in 2024 to 0.28, which may suggest a decrease in the company's ability to cover its short-term obligations with cash on hand.
Overall, TE Connectivity Ltd's cash ratio has shown some variability over the years, and it is essential for stakeholders to monitor this ratio to assess the company's liquidity position and its ability to meet short-term financial obligations.
Peer comparison
Sep 30, 2024