TE Connectivity Ltd (TEL)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 927,000 | 546,000 | 565,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 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 | 2,320,000 | 2,463,000 | 2,463,000 |
| Total current liabilities | US$ in thousands | 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 | 3,540,000 | 3,694,000 | 3,867,000 |
| Quick ratio | 1.00 | 1.04 | 0.97 | 0.90 | 0.84 | 0.85 | 0.78 | 0.76 | 0.90 | 0.89 | 0.94 | 0.93 | 0.92 | 0.90 | 0.70 | 0.82 | 0.90 | 0.92 | 0.81 | 0.78 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,170,000K
+ $—K
+ $2,828,000K)
÷ $4,011,000K
= 1.00
The quick ratio of TE Connectivity Ltd has shown some fluctuations over the past few years, ranging from as low as 0.70 to as high as 1.04. A quick ratio of 1.00 indicates that the company has $1.00 of highly liquid assets available to cover each dollar of current liabilities, reflecting a strong ability to meet short-term obligations.
The trend of the quick ratio over the periods analyzed shows some variability, with levels above 1.00 indicating a more conservative approach to liquidity management, while levels below 1.00 may suggest potential liquidity challenges in meeting immediate liabilities.
It is important to note that a quick ratio of less than 1.00 may indicate that the company may have difficulty meeting its short-term obligations without relying on the sale of inventory. Therefore, monitoring the quick ratio over time can provide insights into the company's liquidity position and ability to withstand unforeseen financial challenges.
Peer comparison
Dec 31, 2023