Texas Instruments Incorporated (TXN)

Current 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
Total current assets	US$ in thousands	15,026,000	15,872,000	16,789,000	17,448,000	15,122,000	15,097,000	15,514,000	15,023,000	14,021,000	13,772,000	13,043,000	14,010,000	13,685,000	13,585,000	11,177,000	10,405,000	10,239,000	9,259,000	8,488,000	8,310,000
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
Current ratio		4.12	4.31	4.62	4.91	4.55	5.69	5.72	5.17	4.70	4.92	5.09	5.54	5.33	5.63	5.08	6.12	4.28	4.24	3.92	3.49

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $15,026,000K ÷ $3,643,000K
= 4.12

The current ratio of Texas Instruments Incorporated has shown a generally upward trend from March 31, 2020 to September 30, 2021, indicating an improvement in the company's short-term liquidity position. The ratio increased from 3.49 on March 31, 2020 to 5.63 on September 30, 2021, peaking at 6.12 on March 31, 2021. This suggests that the company's current assets have been increasing relative to its current liabilities during this period.

However, from December 31, 2021 onwards, the current ratio began to show some fluctuations, trending downwards but remaining above the 4.00 level, which is generally considered healthy. As of December 31, 2024, the current ratio stands at 4.12, indicating that the company still has more than enough current assets to cover its current liabilities.

Overall, the current ratio analysis suggests that Texas Instruments Incorporated has maintained a strong short-term liquidity position over the analyzed periods, although there have been fluctuations in the ratio from 2021 onwards. It is important for the company to continue monitoring and managing its current assets and liabilities effectively to ensure continued financial stability.