Texas Instruments Incorporated (TXN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,200,000 | 2,964,000 | 3,050,000 | 4,631,000 | 3,107,000 |
| Short-term investments | US$ in thousands | 4,380,000 | 5,611,000 | 6,017,000 | 5,108,000 | 3,461,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,643,000 | 3,320,000 | 2,985,000 | 2,569,000 | 2,390,000 |
| Quick ratio | 2.08 | 2.58 | 3.04 | 3.79 | 2.75 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,200,000K
+ $4,380,000K
+ $—K)
÷ $3,643,000K
= 2.08
The quick ratio of Texas Instruments Incorporated has shown a positive trend over the past five years, indicating strong short-term liquidity and ability to meet its immediate financial obligations. The quick ratio was 2.75 as of December 31, 2020, showing a healthy level of current assets that can cover its current liabilities. This ratio improved significantly to 3.79 by December 31, 2021, indicating even greater liquidity and financial security.
Although there was a slight decrease in the quick ratio to 3.04 by December 31, 2022, it remained at a comfortable level above 1, suggesting the company's ability to quickly convert its most liquid assets into cash to meet short-term obligations. However, by December 31, 2023, the quick ratio declined to 2.58, which, while still above 1, indicates a slight reduction in liquidity compared to the previous year.
The latest available data, as of December 31, 2024, shows a quick ratio of 2.08. While this is a bit lower than the ratios in the preceding years, it still suggests that Texas Instruments maintains a strong liquidity position, albeit slightly less than in the earlier years of the analysis period.
Overall, the quick ratio analysis indicates that Texas Instruments Incorporated has maintained a healthy level of liquidity over the past five years, with sufficient liquid assets to cover its short-term liabilities. However, it's important for the company to continue monitoring and managing its liquidity position to ensure it remains robust in the future.
Peer comparison
Dec 31, 2024