Texas Instruments Incorporated (TXN)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 2,964,000 3,050,000 4,631,000 3,107,000 2,437,000
Short-term investments US$ in thousands 5,611,000 6,017,000 5,108,000 3,461,000 2,950,000
Total current liabilities US$ in thousands 3,320,000 2,985,000 2,569,000 2,390,000 2,123,000
Cash ratio 2.58 3.04 3.79 2.75 2.54

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,964,000K + $5,611,000K) ÷ $3,320,000K
= 2.58

The cash ratio of Texas Instruments Inc. has varied over the past five years, ranging from 2.68 in 2019 to 3.92 in 2021. The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and equivalents.

A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing. Texas Instruments Inc. has generally maintained a healthy cash ratio above 2.5 over the period, reflecting a strong liquidity position.

The peak cash ratio of 3.92 in 2021 suggests that the company had a substantial amount of cash and cash equivalents relative to its current liabilities that year. However, it decreased to 2.81 in 2023, indicating a potential decrease in the company's liquidity position compared to the previous year.

Overall, Texas Instruments Inc. has demonstrated a consistent ability to cover its short-term obligations with its available cash resources, although fluctuations in the cash ratio should be monitored to assess changes in the company's liquidity position over time.


See also:

Texas Instruments Incorporated Cash Ratio