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.
Peer comparison
Dec 31, 2023