Texas Instruments Incorporated (TXN)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 15,122,000 | 14,021,000 | 13,685,000 | 10,239,000 | 8,761,000 |
| Total current liabilities | US$ in thousands | 3,320,000 | 2,985,000 | 2,569,000 | 2,390,000 | 2,123,000 |
| Current ratio | 4.55 | 4.70 | 5.33 | 4.28 | 4.13 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $15,122,000K ÷ $3,320,000K
= 4.55
The current ratio of Texas Instruments Inc. has shown a relatively consistent trend over the past five years. The ratio has ranged from 4.13 to 5.33, indicating that the company has generally maintained a healthy level of current assets relative to its current liabilities.
A current ratio above 1 indicates that the company has more current assets than current liabilities, which is a positive sign of liquidity. Texas Instruments Inc.'s current ratio has consistently been well above 1, ranging from 4.13 to 5.33, which suggests that the company is able to comfortably cover its short-term obligations using its current assets.
The gradual decrease in the current ratio from 5.33 in 2021 to 4.55 in 2023 may suggest a slight decline in liquidity, but the ratio still remains at a healthy level. It is important to note that a higher current ratio does not always indicate better financial health, as an excessively high current ratio may imply that the company is not utilizing its current assets efficiently.
Overall, based on the current ratio trend, Texas Instruments Inc. appears to have maintained a strong liquidity position over the years, providing a cushion to meet short-term financial obligations.
Peer comparison
Dec 31, 2023