TE Connectivity Ltd (TEL)
Quick ratio
| 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 | US$ in thousands | 1,319,000 | 1,469,000 | 1,176,000 | 1,170,000 | 1,661,000 | 1,131,000 | 905,000 | 793,000 | 1,088,000 | 820,000 | 749,000 | 982,000 | 1,203,000 | 1,416,000 | 1,748,000 | 1,098,000 | 945,000 | 474,000 | 796,000 | 742,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | 8,000 | 7,000 | 8,000 | 10,000 | — | — | — | — | — |
| Receivables | US$ in thousands | 3,055,000 | 2,889,000 | 2,874,000 | 2,828,000 | 2,967,000 | 2,998,000 | 3,048,000 | 2,910,000 | 2,865,000 | 3,132,000 | 3,068,000 | 2,844,000 | 2,928,000 | 2,985,000 | 2,921,000 | 2,640,000 | 2,377,000 | 2,146,000 | 2,461,000 | 2,338,000 |
| Total current liabilities | US$ in thousands | 4,746,000 | 5,117,000 | 5,163,000 | 4,011,000 | 4,463,000 | 4,258,000 | 4,393,000 | 4,420,000 | 4,632,000 | 5,058,000 | 5,046,000 | 4,274,000 | 4,656,000 | 4,662,000 | 5,039,000 | 4,083,000 | 3,690,000 | 3,727,000 | 3,959,000 | 3,404,000 |
| 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 |
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 shown some fluctuations over the past few quarters, indicating changes in the company's ability to meet its short-term obligations using its most liquid assets.
As of September 30, 2024, the quick ratio stands at 0.92, a decrease from the previous quarter and below the ideal value of 1. This suggests that the company may have slightly less liquid assets available to cover its current liabilities.
Looking at the trend over the past few quarters, we see that the quick ratio has ranged from a low of 0.70 to a high of 1.04. While there have been periods of improvement, such as in December 2023 and September 2023, the quick ratio has generally been below 1, indicating a potential risk in the company's ability to cover its short-term obligations with its quick assets.
Overall, TE Connectivity Ltd's quick ratio indicates that the company may need to carefully manage its liquidity position to ensure it can meet its short-term financial obligations in a timely manner.
Peer comparison
Sep 30, 2024