TE Connectivity Ltd (TEL)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,892,000 | 7,268,000 | 7,263,000 | 5,784,000 | 5,554,000 |
| Total current liabilities | US$ in thousands | 4,463,000 | 4,632,000 | 4,656,000 | 3,690,000 | 3,540,000 |
| Current ratio | 1.77 | 1.57 | 1.56 | 1.57 | 1.57 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,892,000K ÷ $4,463,000K
= 1.77
TE Connectivity Ltd has shown a fluctuating trend in its current ratio over the past five years. In the most recent fiscal year ending on September 30, 2023, the company's current ratio improved to 1.77 from the prior year's 1.57. This indicates that TE Connectivity Ltd's current assets are sufficient to cover its current liabilities with a comfortable margin.
Comparing the current ratio to previous years, we observe that there was a slight increase from the fiscal year 2022, where the ratio was at 1.57, consistent with the results from fiscal years 2021, 2020, and 2019. This improvement suggests a better liquidity position for the company in the latest fiscal year.
Despite the positive increase in the current ratio for 2023, further analysis should consider the composition of current assets and liabilities to ensure the company's short-term solvency and operational efficiency. Additionally, monitoring the trend over subsequent periods will be essential to assess the company's liquidity management and financial health.
Peer comparison
Sep 30, 2023