Texas Instruments Incorporated (TXN)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 2,964,000 3,050,000 4,631,000 3,107,000 2,437,000
Short-term investments US$ in thousands 5,611,000 6,017,000 5,108,000 3,461,000 2,950,000
Receivables US$ in thousands 1,787,000 1,895,000 1,701,000 1,414,000 1,074,000
Total current liabilities US$ in thousands 3,320,000 2,985,000 2,569,000 2,390,000 2,123,000
Quick ratio 3.12 3.67 4.45 3.34 3.04

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,964,000K + $5,611,000K + $1,787,000K) ÷ $3,320,000K
= 3.12

The quick ratio of Texas Instruments Inc. has shown fluctuation over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In 2023, the quick ratio decreased to 3.35 from the previous year's 3.77. Although the ratio decreased, it still indicates that Texas Instruments Inc. has $3.35 of highly liquid assets available to cover each dollar of its current liabilities. This signifies that the company has a strong ability to meet its short-term obligations.

Comparing 2023 to 2021, where the quick ratio was 4.58, there was a significant decrease. This suggests that in 2021, the company had a higher level of highly liquid assets in relation to its current liabilities, indicating a stronger financial position in that year.

On a positive note, the quick ratio in 2023 is higher than in 2020 and 2019, indicating an improvement in the company's ability to meet its short-term obligations with readily available assets.

Overall, Texas Instruments Inc. has maintained a healthy quick ratio over the years, demonstrating a consistent ability to cover its short-term liabilities using its liquid assets. It is important for investors and stakeholders to continue monitoring this ratio as part of their assessment of the company's financial health and liquidity position.


Peer comparison

Dec 31, 2023


See also:

Texas Instruments Incorporated Quick Ratio