TE Connectivity Ltd (TEL)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 | — |
| Receivables | US$ in thousands | 3,055,000 | 2,967,000 | 2,865,000 | 2,928,000 | 2,377,000 |
| Total current liabilities | US$ in thousands | 4,746,000 | 4,463,000 | 4,632,000 | 4,656,000 | 3,690,000 |
| Quick ratio | 0.92 | 1.04 | 0.85 | 0.89 | 0.90 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,319,000K
+ $—K
+ $3,055,000K)
÷ $4,746,000K
= 0.92
The quick ratio of TE Connectivity Ltd has been fluctuating over the past five years. In 2024, the quick ratio decreased to 0.92 from 1.04 in 2023. This indicates that the company may have slightly less liquidity to cover its short-term obligations with its most liquid assets excluding inventory in 2024 compared to the previous year.
Although the quick ratio has varied, it generally stayed below 1 in the last five years, suggesting that TE Connectivity Ltd may have had difficulty meeting its short-term liabilities solely with its most liquid assets. This could potentially indicate a need for the company to improve its liquidity management practices or to consider strategies to enhance its current asset position relative to its current liabilities.
Peer comparison
Sep 30, 2024