TE Connectivity Ltd (TEL)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,661,000 | 1,088,000 | 1,203,000 | 945,000 | 927,000 |
| Short-term investments | US$ in thousands | — | — | 7,000 | — | — |
| Total current liabilities | US$ in thousands | 4,463,000 | 4,632,000 | 4,656,000 | 3,690,000 | 3,540,000 |
| Cash ratio | 0.37 | 0.23 | 0.26 | 0.26 | 0.26 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,661,000K
+ $—K)
÷ $4,463,000K
= 0.37
The cash ratio of TE Connectivity Ltd has shown fluctuations over the past five years. In the most recent fiscal year ending September 30, 2023, the cash ratio improved significantly to 0.37 compared to 0.23 in the previous year, indicating a higher level of liquidity. This suggests that TE Connectivity had a higher proportion of cash and cash equivalents relative to its current liabilities in 2023, which is a positive sign for the company's ability to meet its short-term obligations.
Comparing the cash ratio for 2023 with the ratios from the preceding years, we observe that it is the highest in the five-year period. This may signify improved cash management practices or a more conservative approach to liquidity management by TE Connectivity in the most recent year.
Overall, the upward trend in the cash ratio, particularly in 2023, suggests that TE Connectivity has enhanced its liquidity position and potentially strengthened its ability to cover short-term financial commitments with available cash resources. However, it is essential to consider other liquidity and financial metrics in conjunction with the cash ratio to gain a more comprehensive understanding of the company's financial health.
Peer comparison
Sep 30, 2023