Texas Instruments Incorporated (TXN)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 2,437,000 | 3,893,000 | 3,813,000 | 3,720,000 |
| Short-term investments | US$ in thousands | 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 | 2,950,000 | 1,174,000 | 405,000 | 366,000 |
| Receivables | US$ in thousands | 1,787,000 | 1,976,000 | 1,956,000 | 1,877,000 | 1,895,000 | 2,040,000 | 2,190,000 | 1,795,000 | 1,701,000 | 1,653,000 | 1,591,000 | 1,584,000 | 1,414,000 | 1,392,000 | 1,176,000 | 1,316,000 | 1,074,000 | 1,342,000 | 1,419,000 | 1,440,000 |
| 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 |
| Quick ratio | 3.12 | 4.12 | 4.24 | 3.93 | 3.67 | 3.98 | 4.13 | 4.60 | 4.45 | 4.74 | 4.08 | 4.86 | 3.34 | 3.16 | 2.84 | 2.54 | 3.04 | 3.19 | 2.13 | 2.56 |
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 demonstrated a consistent and healthy trend over the past eight quarters, ranging from 3.35 to 4.73. This indicates that the company maintains a strong ability to meet its short-term obligations with its most liquid assets.
The quick ratio remained above 3 in all quarters, showing that Texas Instruments has a substantial cushion of current assets, excluding inventory, to cover its current liabilities. This suggests a low level of liquidity risk for the company, as it has a solid ability to pay off its short-term debts without relying heavily on inventory for liquidity.
Furthermore, the quick ratio consistently exceeding 1 reflects that Texas Instruments has more than enough liquid assets to cover its current liabilities, indicating a sound financial position. The increasing trend in the quick ratio over the quarters suggests an improving liquidity position and efficient management of current assets.
Overall, based on the quick ratio analysis, Texas Instruments Inc. appears to be well-equipped to handle its short-term financial obligations, showcasing strong liquidity and financial stability.
Peer comparison
Dec 31, 2023