Texas Instruments Incorporated (TXN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,200,000 | 2,589,000 | 2,740,000 | 2,483,000 | 2,964,000 | 2,566,000 | 3,439,000 | 4,477,000 | 3,050,000 | 3,169,000 | 3,802,000 | 3,505,000 | 4,631,000 | 5,663,000 | 3,649,000 | 2,442,000 | 3,107,000 | 2,822,000 | 4,294,000 | 2,518,000 |
| Short-term investments | US$ in thousands | 4,380,000 | 6,163,000 | 6,948,000 | 7,910,000 | 5,611,000 | 6,382,000 | 6,113,000 | 5,068,000 | 6,017,000 | 5,921,000 | 4,585,000 | 6,320,000 | 5,108,000 | 4,119,000 | 3,741,000 | 4,244,000 | 3,461,000 | 2,696,000 | 666,000 | 2,224,000 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 2.08 | 2.37 | 2.66 | 2.93 | 2.58 | 3.37 | 3.52 | 3.29 | 3.04 | 3.25 | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | 2.75 | 2.53 | 2.29 | 1.99 |
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 generally positive trend over the past few years, indicating strong liquidity and an ability to meet short-term obligations. The quick ratio, which measures the company's ability to cover immediate liabilities with its most liquid assets, has consistently remained above the ideal threshold of 1. This suggests that Texas Instruments has a healthy level of liquid assets to cover its current liabilities without relying on selling inventory.
The quick ratio improved from 1.99 as of March 31, 2020, to 4.05 as of September 30, 2021, indicating a substantial increase in liquidity during this period. However, there was a slight decline in the quick ratio to 2.08 by December 31, 2024, which may warrant further monitoring.
Overall, the quick ratio data suggests that Texas Instruments has maintained a strong liquidity position, which is essential for coping with unexpected expenses or economic downturns. Nevertheless, it is important for the company to continue monitoring its quick ratio to ensure sustainable liquidity levels in the future.
Peer comparison
Dec 31, 2024