Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Texas Instruments Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Current Ratio
- The current ratio exhibits a general upward trend from March 2020 to March 2021, increasing from 3.49 to a peak of 6.12. This suggests an improvement in short-term liquidity during this period. After peaking, the ratio fluctuates moderately, maintaining relatively high levels around 5.0 to 5.7 through 2021 and 2023. However, there is a noticeable decline starting in late 2023, reaching a low of 4.12 by the end of the first quarter of 2025 before rebounding slightly to 5.26. Overall, the current ratio reflects a strong liquidity position with some volatility toward the later periods.
- Quick Ratio
- Similar to the current ratio, the quick ratio rises significantly from 2.54 in March 2020 to a high of 4.86 in March 2021. This indicates an increase in liquid assets excluding inventories. After the peak, the ratio trends downward with minor fluctuations, dropping to 3.67 by December 2022. A slight recovery occurs in mid-2023, followed by a gradual decrease to 2.55 by March 2025. The quick ratio trend is consistent with the current ratio, showing an initial enhancement in liquidity that diminishes over time but remains above the initial 2020 levels.
- Cash Ratio
- The cash ratio also shows an upward movement from 1.99 in March 2020 to 3.93 in March 2021, signaling increased cash and cash equivalents relative to current liabilities. After this peak, the ratio decreases steadily with some oscillations, reaching 3.04 by the end of 2022. It experiences a brief rise to 3.52 mid-2023, then declines more sharply to 2.01 by March 2025. The pattern mirrors those of the current and quick ratios, indicating improved liquidity in early periods followed by a gradual reduction in cash reserves relative to current liabilities over the later quarters.
Current Ratio
Texas Instruments Inc., current ratio calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Current ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets exhibit a general increasing trend from March 2020 to March 2025, starting at 8,310 million USD and reaching a peak of 17,448 million USD in June 2024 before declining to 13,086 million USD by the end of the observed period. The growth is most pronounced between June 2020 and June 2021, with a sharp increase from 8,488 million USD to 11,177 million USD. This is followed by fluctuations, including a notable peak in December 2021 at 13,685 million USD and a subsequent series of rises and falls throughout the following years.
- Current Liabilities
- Current liabilities display a fluctuating pattern with several periods of increase and decrease. Initially, liabilities decreased from 2,381 million USD in March 2020 to 1,700 million USD in March 2021, followed by a general upward trend, peaking at 3,686 million USD in September 2024. After this peak, liabilities sharply decline to 2,489 million USD by March 2025. The rise in liabilities from mid-2021 to late 2024 indicates increased short-term obligations, which later reduce significantly by early 2025.
- Current Ratio
- The current ratio remains well above 3.0 throughout the period, indicating strong short-term liquidity. It begins at 3.49 in March 2020, rises sharply to a high of 6.12 in March 2021 coinciding with a decrease in current liabilities and an increase in assets. The ratio then fluctuates in a range mostly between 4.1 and 5.7, reflecting relative stability in liquidity despite moderate changes in assets and liabilities. Notably, a significant decrease to 4.12 occurs by March 2025, even as both assets and liabilities have fallen, but the ratio still points to a comfortable liquidity position.
- Summary
- The data reflects a company that maintains strong liquidity over the observed periods with current assets consistently exceeding current liabilities by a substantial margin. The initial sharp increase in the current ratio and current assets around early 2021 suggest possibly an accumulation of liquid resources or higher receivables. The fluctuations in liabilities and assets in later periods may indicate varying operational or financing activities affecting working capital components. The overall downward trend in both assets and liabilities toward the end of the period suggests a possible strategic reduction in working capital or a response to changing market conditions, yet liquidity remains robust.
Quick Ratio
Texas Instruments Inc., quick ratio calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||
| Accounts receivable, net of allowances | ||||||||||||||||||||||||||||
| Total quick assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Quick ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets exhibited a general upward trend from March 31, 2020, reaching a peak around March 31, 2024. The value increased from 6,058 million USD to 12,064 million USD in this period, nearly doubling. After this peak, there was a noticeable decline, falling to 6,865 million USD by March 31, 2025.
- Current liabilities
- Current liabilities showed some fluctuations throughout the periods but generally increased from 2,381 million USD in March 31, 2020, to a peak of 3,686 million USD around September 30, 2024. Subsequently, liabilities decreased sharply to 2,489 million USD by March 31, 2025.
- Quick ratio
- The quick ratio indicated strong liquidity positions throughout most periods, starting at 2.54 in March 2020 and rising substantially to a high of 4.86 by March 31, 2021. Following this peak, the ratio fluctuated but maintained levels generally above 3.0 until a decline began after December 31, 2023. By March 31, 2025, the quick ratio had dropped to 2.76, reflecting a decrease in liquidity relative to current liabilities.
- Overall analysis
- The data suggest a strong liquidity position sustained through most of the observed period, supported by growing quick assets that generally outpaced current liabilities. Peaks in both total quick assets and quick ratio occurred around early 2024, reflecting a period of maximized liquidity strength. However, the latter part of the timeline shows a contraction in liquidity measures, as quick assets fell sharply while current liabilities reduced less markedly. This could indicate a strategic shift in asset management or operational changes impacting liquidity. The quick ratio, while declining, remains above 2.5 at the end of the period, indicating continued ability to cover short-term obligations, albeit with less buffer than in prior years.
Cash Ratio
Texas Instruments Inc., cash ratio calculation (quarterly data)
| Mar 31, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Cash and cash equivalents | ||||||||||||||||||||||||||||
| Short-term investments | ||||||||||||||||||||||||||||
| Total cash assets | ||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||
| Cash ratio1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets show an overall upward trend from March 31, 2020, peaking around the late 2021 period. After March 31, 2022, a gradual decline is observed, with a significant drop notable starting in the fourth quarter of 2024 through March 31, 2025, reaching the lowest value in the period under review.
- Current Liabilities Trend
- Current liabilities remained relatively stable in the early periods through 2020, experiencing an increase starting mid-2021. A peak is visible around the fourth quarter of 2024, after which a decrease occurs by March 31, 2025. The fluctuations suggest periods of increased short-term obligations followed by a reduction towards the end of the timeline.
- Cash Ratio Analysis
- The cash ratio shows a strong liquidity position throughout the periods, starting near 2.0 in early 2020 and increasing steadily to peak above 4.0 in late 2021. Following this peak, the cash ratio gradually declines but remains above 2.0, indicating that the company generally held more than twice the cash assets than current liabilities, reflecting considerable short-term financial stability. The decline in the cash ratio toward the end of the period aligns with the observed decrease in total cash assets combined with relatively high current liabilities.
- Overall Financial Liquidity Insights
- The data indicates that there was a period of strong liquidity enhancement until late 2021, driven by increasing cash assets outpacing current liabilities. However, from early 2022 onward, the trend reversed with cash assets decreasing and current liabilities increasing or remaining elevated, leading to reduced liquidity ratios. The recent periods show a notable reduction in cash assets coupled with sustained liabilities, which may suggest the company is utilizing more of its liquid assets or facing pressures on short-term liquidity.