Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Texas Instruments Inc. (NASDAQ:TXN)

Analysis of Liquidity Ratios

Beginner level


Liquidity Ratios (Summary)

Texas Instruments Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Current ratio 4.13 3.27 3.87 3.29 2.77
Quick ratio 3.04 2.20 2.55 2.10 1.72
Cash ratio 2.54 1.71 1.98 1.54 1.26

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Texas Instruments Inc.’s current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Texas Instruments Inc.’s quick ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Texas Instruments Inc.’s cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Current Ratio

Texas Instruments Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Current assets 8,761  8,097  8,734  7,457  7,074 
Current liabilities 2,123  2,474  2,258  2,264  2,555 
Liquidity Ratio
Current ratio1 4.13 3.27 3.87 3.29 2.77
Benchmarks
Current Ratio, Competitors2
Advanced Micro Devices Inc. 1.95 1.78 1.76 1.88 1.65
Apple Inc. 1.54 1.12 1.28 1.35 1.11
Applied Materials Inc. 2.30 2.64 3.14 2.30 2.44
Broadcom Inc. 1.44 3.90 6.26 2.31 3.37
Cisco Systems Inc. 1.51 2.29 3.03 3.16 3.23
Intel Corp. 1.40 1.73 1.69 1.75 2.58
Lam Research Corp. 3.61 2.90 3.10 3.81 2.38
Micron Technology Inc. 2.58 2.79 2.34 1.96 2.20
NVIDIA Corp. 7.94 8.03 4.77 2.57 6.38
Qualcomm Inc. 1.88 1.55 4.00 3.14 3.62
Current Ratio, Sector
Technology Hardware & Equipment 1.68 1.58 2.01 1.94 1.91
Current Ratio, Industry
Technology 2.04 2.18 2.39 2.35 2.30

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,761 ÷ 2,123 = 4.13

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Texas Instruments Inc.’s current ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Quick Ratio

Texas Instruments Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,437  2,438  1,656  1,154  1,000 
Short-term investments 2,950  1,795  2,813  2,336  2,218 
Accounts receivable, net of allowances 1,074  1,207  1,278  1,267  1,165 
Total quick assets 6,461  5,440  5,747  4,757  4,383 
 
Current liabilities 2,123  2,474  2,258  2,264  2,555 
Liquidity Ratio
Quick ratio1 3.04 2.20 2.55 2.10 1.72
Benchmarks
Quick Ratio, Competitors2
Advanced Micro Devices Inc. 1.43 1.21 1.07 1.17 0.94
Apple Inc. 1.38 0.99 1.09 1.22 0.89
Applied Materials Inc. 1.38 1.62 2.34 1.66 1.77
Broadcom Inc. 1.21 3.26 5.40 1.71 2.54
Cisco Systems Inc. 1.39 2.11 2.92 3.05 2.97
Intel Corp. 0.93 1.11 1.13 1.07 1.92
Lam Research Corp. 2.90 2.26 2.62 3.34 1.96
Micron Technology Inc. 1.74 2.13 1.72 1.34 1.54
NVIDIA Corp. 6.66 7.26 4.26 2.36 5.69
Qualcomm Inc. 1.65 1.33 3.75 2.85 3.16
Quick Ratio, Sector
Technology Hardware & Equipment 1.42 1.33 1.73 1.67 1.57
Quick Ratio, Industry
Technology 1.84 1.96 2.18 2.13 2.02

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,461 ÷ 2,123 = 3.04

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Texas Instruments Inc.’s quick ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Cash Ratio

Texas Instruments Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,437  2,438  1,656  1,154  1,000 
Short-term investments 2,950  1,795  2,813  2,336  2,218 
Total cash assets 5,387  4,233  4,469  3,490  3,218 
 
Current liabilities 2,123  2,474  2,258  2,264  2,555 
Liquidity Ratio
Cash ratio1 2.54 1.71 1.98 1.54 1.26
Benchmarks
Cash Ratio, Competitors2
Advanced Micro Devices Inc. 0.64 0.58 0.80 0.94 0.56
Apple Inc. 0.95 0.57 0.74 0.85 0.52
Applied Materials Inc. 0.81 0.99 1.77 1.03 1.31
Broadcom Inc. 0.73 1.84 4.43 1.01 1.63
Cisco Systems Inc. 1.05 1.72 2.56 2.64 2.56
Intel Corp. 0.59 0.70 0.80 0.84 1.62
Lam Research Corp. 2.29 1.57 2.05 2.82 1.55
Micron Technology Inc. 1.24 1.18 1.02 0.91 0.90
NVIDIA Corp. 5.58 6.16 3.80 2.14 5.16
Qualcomm Inc. 1.37 1.08 3.42 2.55 2.84
Cash Ratio, Sector
Technology Hardware & Equipment 1.01 0.88 1.35 1.30 1.18
Cash Ratio, Industry
Technology 1.39 1.47 1.74 1.68 1.56

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-22), 10-K (filing date: 2017-02-23), 10-K (filing date: 2016-02-24).

1 2019 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,387 ÷ 2,123 = 2.54

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Texas Instruments Inc.’s cash ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.