TE Connectivity Ltd (TEL)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.61 | 1.51 | 1.45 | 1.86 | 1.77 | 1.80 | 1.69 | 1.66 | 1.57 | 1.50 | 1.47 | 1.69 | 1.56 | 1.59 | 1.47 | 1.59 | 1.57 | 1.43 | 1.44 | 1.64 |
| Quick ratio | 0.92 | 0.85 | 0.78 | 1.00 | 1.04 | 0.97 | 0.90 | 0.84 | 0.85 | 0.78 | 0.76 | 0.90 | 0.89 | 0.95 | 0.93 | 0.92 | 0.90 | 0.70 | 0.82 | 0.90 |
| Cash ratio | 0.28 | 0.29 | 0.23 | 0.29 | 0.37 | 0.27 | 0.21 | 0.18 | 0.23 | 0.16 | 0.15 | 0.23 | 0.26 | 0.31 | 0.35 | 0.27 | 0.26 | 0.13 | 0.20 | 0.22 |
TE Connectivity Ltd's liquidity ratios demonstrate fluctuations over the evaluated periods. The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, ranged between 1.45 and 1.86, indicating a generally healthy liquidity position. However, a downward trend is noticeable, suggesting a potential decrease in short-term solvency.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, varied between 0.78 and 1.04. This ratio indicates TE Connectivity's ability to cover its short-term liabilities with more liquid assets, with fluctuations suggesting changes in the company's ability to quickly meet its financial obligations.
The cash ratio, focusing solely on the most liquid assets like cash and cash equivalents to cover short-term liabilities, ranged from 0.15 to 0.37. Similar to the quick ratio, the cash ratio shows fluctuations, highlighting the company's liquidity position and its ability to address immediate obligations with its most liquid resources.
Overall, based on the current, quick, and cash ratios, TE Connectivity Ltd has maintained a solid liquidity position throughout the evaluated periods, albeit with some variability. Monitoring these ratios over time can provide insights into the company's ability to meet its short-term financial commitments and manage its working capital efficiently.
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 93.71 | 96.46 | 99.83 | 95.70 | 95.44 | 99.56 | 98.80 | 98.15 | 95.02 | 105.52 | 102.87 | 95.17 | 90.21 | 90.20 | 93.12 | 91.00 | 93.52 | 95.77 | 88.33 | 83.75 |
TE Connectivity Ltd's cash conversion cycle has shown some fluctuations over the past few quarters. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we can see that the cash conversion cycle ranged from a low of 83.75 days in March 2020 to a high of 105.52 days in June 2022. A longer cash conversion cycle indicates that the company is taking longer to convert its investments into cash, which could potentially strain its liquidity.
In more recent quarters, the cash conversion cycle has remained relatively stable, ranging between 93.71 days and 99.83 days. This indicates that TE Connectivity Ltd has been managing its working capital efficiently and keeping a balance between its receivables, payables, and inventory turnover.
Overall, TE Connectivity Ltd's cash conversion cycle has seen some variation but has stabilized in the more recent periods. Monitoring this metric is important for assessing the company's operational efficiency and ability to generate cash flows.