Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Texas Instruments Inc., liquidity ratios
| 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
| 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
| 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
| 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. |