Texas Instruments Incorporated (TXN)
Cash ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,200,000 | 2,589,000 | 2,740,000 | 2,483,000 | 2,964,000 | 2,566,000 | 3,439,000 | 4,477,000 | 3,050,000 | 3,169,000 | 3,802,000 | 3,505,000 | 4,631,000 | 5,663,000 | 3,649,000 | 2,442,000 | 3,107,000 | 2,822,000 | 4,294,000 | 2,518,000 |
| Short-term investments | US$ in thousands | 4,380,000 | 6,163,000 | 6,948,000 | 7,910,000 | 5,611,000 | 6,382,000 | 6,113,000 | 5,068,000 | 6,017,000 | 5,921,000 | 4,585,000 | 6,320,000 | 5,108,000 | 4,119,000 | 3,741,000 | 4,244,000 | 3,461,000 | 2,696,000 | 666,000 | 2,224,000 |
| Total current liabilities | US$ in thousands | 3,643,000 | 3,686,000 | 3,637,000 | 3,553,000 | 3,320,000 | 2,652,000 | 2,711,000 | 2,904,000 | 2,985,000 | 2,798,000 | 2,560,000 | 2,528,000 | 2,569,000 | 2,413,000 | 2,201,000 | 1,700,000 | 2,390,000 | 2,185,000 | 2,163,000 | 2,381,000 |
| Cash ratio | 2.08 | 2.37 | 2.66 | 2.93 | 2.58 | 3.37 | 3.52 | 3.29 | 3.04 | 3.25 | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | 2.75 | 2.53 | 2.29 | 1.99 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,200,000K
+ $4,380,000K)
÷ $3,643,000K
= 2.08
The cash ratio of Texas Instruments Incorporated has shown a consistent upward trend over the past few years, indicating the company's improved ability to cover its short-term liabilities with its cash and cash equivalents. The ratio increased steadily from 1.99 as of March 31, 2020, to a peak of 4.05 as of September 30, 2021. This upward trajectory suggests that the company has been effectively managing its cash resources and maintaining sufficient liquidity to meet its obligations.
Although there was a slight dip in the cash ratio in the following quarters, the ratio remained relatively high, indicating a strong cash position for Texas Instruments. The ratio fluctuated between 2.08 and 3.93 in the last quarter reported as of December 31, 2024, reflecting some variability in the company's cash holdings but still demonstrating a healthy liquidity position.
Overall, the trend in Texas Instruments' cash ratio suggests that the company has been prudently managing its cash resources, which is crucial for weathering economic uncertainties and unforeseen expenses. A high cash ratio can provide a sense of security to investors and creditors, as it indicates the company's ability to meet its short-term obligations without relying heavily on external financing.
Peer comparison
Dec 31, 2024