TE Connectivity Ltd (TEL)

Quick ratio

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Cash US$ in thousands 1,661,000 1,088,000 1,203,000 945,000 927,000
Short-term investments US$ in thousands 7,000
Receivables US$ in thousands 2,967,000 2,865,000 2,928,000 2,377,000 2,320,000
Total current liabilities US$ in thousands 4,463,000 4,632,000 4,656,000 3,690,000 3,540,000
Quick ratio 1.04 0.85 0.89 0.90 0.92

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,661,000K + $—K + $2,967,000K) ÷ $4,463,000K
= 1.04

The quick ratio of TE Connectivity Ltd has shown variability over the past five years. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, indicating that the company has sufficient liquid assets to cover its current liabilities.

In the most recent fiscal year ending September 30, 2023, TE Connectivity Ltd's quick ratio improved significantly to 1.04 from 0.85 in the previous year. This indicates a stronger ability to meet short-term liabilities using liquid assets. The increase suggests improved liquidity management or potential reduction in short-term obligations.

Comparing to the ratios in the previous years, the quick ratio was 0.89 in 2021, 0.90 in 2020, and 0.92 in 2019. While there were fluctuations in the quick ratio over these years, it is positive to note that the ratio has remained above 1 in recent years, indicating an overall improvement in the company's liquidity position.

However, it is essential to assess the components of the quick ratio, such as cash, marketable securities, and receivables, to gain a deeper understanding of the company's liquidity management. Overall, the recent increase in TE Connectivity Ltd's quick ratio to 1.04 suggests a healthier liquidity position, which can provide a cushion against unforeseen short-term financial challenges.


Peer comparison

Sep 30, 2023

Company name
Symbol
Quick ratio
TE Connectivity Ltd
TEL
1.04
Arrow Electronics Inc
ARW
0.94
Avnet Inc
AVT
1.05