Texas Instruments Incorporated (TXN)

Current ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total current assets	US$ in thousands	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	8,761,000	8,713,000	7,956,000	7,951,000
Total current liabilities	US$ in thousands	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	2,123,000	2,007,000	2,646,000	2,159,000
Current ratio		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	4.13	4.34	3.01	3.68

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 been consistently strong over the past eight quarters, ranging from 4.55 to 5.72. The company's current assets have shown a healthy trend of being significantly higher than its current liabilities, reflecting its ability to meet its short-term obligations effectively.

In Q3 and Q2 of 2023, the current ratio reached its peak at 5.69 and 5.72 respectively, indicating a substantial liquidity position. Although there was a slight dip in Q4 2023 to 4.55, the ratio remains well above the industry average and suggests that Texas Instruments Inc. is well-equipped to cover its short-term debts.

Overall, the consistent high current ratio of Texas Instruments Inc. reflects the company's strong financial health and efficient management of its working capital to support its operations and growth initiatives.