Microsoft Excel LibreOffice Calc

Texas Instruments Inc. (TXN)


Analysis of Liquidity Ratios

Beginner level


Liquidity Ratios (Summary)

Texas Instruments Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current ratio 3.27 3.87 3.29 2.77 2.92
Quick ratio 2.20 2.55 2.10 1.72 1.80
Cash ratio 1.71 1.98 1.54 1.26 1.33

Based on: 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), 10-K (filing date: 2015-02-24).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Texas Instruments Inc.’s current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Texas Instruments Inc.’s cash ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Current Ratio

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Current assets 8,097  8,734  7,457  7,074  7,768 
Current liabilities 2,474  2,258  2,264  2,555  2,662 
Liquidity Ratio
Current ratio1 3.27 3.87 3.29 2.77 2.92
Benchmarks
Current Ratio, Competitors2
Apple Inc. 1.12 1.28 1.35 1.11 1.08
Applied Materials Inc. 2.64 3.14 2.30 2.44 2.47
Broadcom Inc. 3.90 6.26 2.31 3.37 3.77
Cisco Systems Inc. 2.29 3.03 3.16 3.23 3.39
Intel Corp. 1.73 1.69 1.75 2.58 1.73
Micron Technology Inc. 2.79 2.34 1.96 2.20 2.13
NVIDIA Corp. 8.03 4.77 2.57 6.38 5.95
Qualcomm Inc. 1.55 4.00 3.14 3.62 3.73
Current Ratio, Sector
Technology Hardware & Equipment 1.56 1.99 1.91 1.90 1.87
Current Ratio, Industry
Technology 2.18 2.40 2.35 2.30 2.20

Based on: 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), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,097 ÷ 2,474 = 3.27

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 improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Quick Ratio

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,438  1,656  1,154  1,000  1,199 
Short-term investments 1,795  2,813  2,336  2,218  2,342 
Accounts receivable, net of allowances 1,207  1,278  1,267  1,165  1,246 
Total quick assets 5,440  5,747  4,757  4,383  4,787 
 
Current liabilities 2,474  2,258  2,264  2,555  2,662 
Liquidity Ratio
Quick ratio1 2.20 2.55 2.10 1.72 1.80
Benchmarks
Quick Ratio, Competitors2
Apple Inc. 0.99 1.09 1.22 0.89 0.82
Applied Materials Inc. 1.62 2.34 1.66 1.77 1.71
Broadcom Inc. 3.26 5.40 1.71 2.54 2.35
Cisco Systems Inc. 2.11 2.92 3.05 2.97 3.10
Intel Corp. 1.11 1.13 1.07 1.92 1.15
Micron Technology Inc. 2.13 1.72 1.34 1.54 1.55
NVIDIA Corp. 7.26 4.26 2.36 5.69 5.39
Qualcomm Inc. 1.33 3.75 2.85 3.16 3.32
Quick Ratio, Sector
Technology Hardware & Equipment 1.31 1.72 1.65 1.57 1.50
Quick Ratio, Industry
Technology 1.98 2.20 2.13 2.03 1.90

Based on: 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), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,440 ÷ 2,474 = 2.20

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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

Cash Ratio

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

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (US$ in millions)
Cash and cash equivalents 2,438  1,656  1,154  1,000  1,199 
Short-term investments 1,795  2,813  2,336  2,218  2,342 
Total cash assets 4,233  4,469  3,490  3,218  3,541 
 
Current liabilities 2,474  2,258  2,264  2,555  2,662 
Liquidity Ratio
Cash ratio1 1.71 1.98 1.54 1.26 1.33
Benchmarks
Cash Ratio, Competitors2
Apple Inc. 0.57 0.74 0.85 0.52 0.40
Applied Materials Inc. 0.99 1.77 1.03 1.31 1.12
Broadcom Inc. 1.84 4.43 1.01 1.63 1.58
Cisco Systems Inc. 1.72 2.56 2.64 2.56 2.63
Intel Corp. 0.70 0.80 0.84 1.62 0.88
Micron Technology Inc. 1.18 1.02 0.91 0.90 0.94
NVIDIA Corp. 6.16 3.80 2.14 5.16 4.94
Qualcomm Inc. 1.08 3.42 2.55 2.84 2.92
Cash Ratio, Sector
Technology Hardware & Equipment 0.87 1.34 1.28 1.18 1.07
Cash Ratio, Industry
Technology 1.48 1.75 1.68 1.57 1.40

Based on: 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), 10-K (filing date: 2015-02-24).

1 2018 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,233 ÷ 2,474 = 1.71

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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.