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: 2025-06-30), 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 displays a generally strong liquidity position throughout the observed periods, starting at 3.49 in March 2020 and peaking at 6.12 in March 2021. After this peak, it demonstrates some volatility but remains consistently above 4.0. There is a decline beginning in December 2023, dropping to 4.12 by March 2025, followed by a recovery to 5.81 by June 2025. Overall, the trend indicates significant liquidity with temporary fluctuations in short-term asset management.
- Quick Ratio
- The quick ratio follows a similar pattern to the current ratio but with slightly lower values, reflecting a more conservative view of liquidity without inventory. It starts at 2.54 in March 2020, reaching a high of 4.86 in March 2021, then gradually decreasing to 3.67 by December 2022. After this, it rises again to 4.24 in June 2023 before declining to 2.55 in March 2025. A modest rebound to 2.93 is visible in June 2025. The fluctuations suggest shifts in liquid assets excluding inventory, with a general downward trend towards the latest periods.
- Cash Ratio
- The cash ratio begins at 1.99 in March 2020 and peaks at 3.93 in March 2021, indicating strong cash reserves relative to current liabilities at that point. A downward trend follows, reducing the ratio to 3.04 by December 2022 and continuing to 2.08 in March 2025. A slight uptick to 2.15 is noted by June 2025. This trend reveals a reduction in immediate cash liquidity over time after an initial period of strengthening, signaling potentially tighter cash management or increased use of cash for operational or investment activities.
Current Ratio
Texas Instruments Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | 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: 2025-06-30), 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 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets demonstrated a general upward trend from March 2020 through March 2024, increasing from $8,310 million to a peak of $17,448 million. This growth reflects a strong accumulation of liquid or near-liquid resources. However, from March 2024 onward, there was a noticeable decline, with current assets decreasing to $13,086 million by March 2025, interrupted slightly by a minor rebound to $14,484 million in June 2025. This pattern suggests a potential change in working capital management or asset utilization in the later periods.
- Current Liabilities
- Current liabilities followed a more fluctuating pattern across the timeline. Initially, liabilities dropped from $2,381 million in March 2020 to a low of $1,700 million in March 2021, indicating possible paydown of short-term obligations. Afterwards, liabilities rose steadily, reaching a high of $3,686 million by December 2024. Subsequently, liabilities decreased sharply to around $2,489 million by March 2025 and remained relatively stable through June 2025. These variations imply active management of short-term debt and obligations, possibly aligned with operational or strategic liquidity needs.
- Current Ratio
- The current ratio maintained a consistently healthy and above-average level throughout the reported periods. Starting at 3.49 in March 2020, the ratio increased markedly, peaking at 6.12 in March 2021, which suggests a strong liquidity position. This was followed by fluctuations between around 4.1 and 5.7 over subsequent quarters. Notably, the ratio dropped to 4.12 by March 2025 but rebounded to 5.81 by June 2025. The sustained high current ratio highlights the company's ability to meet its short-term liabilities comfortably, although the moderate decline in certain quarters could reflect shifts in working capital components.
Quick Ratio
Texas Instruments Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-06-30), 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 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding liquidity and short-term financial health.
- Total Quick Assets
- Total quick assets showed an overall upward trajectory from March 2020 through December 2021, increasing steadily from approximately $6.1 billion to around $11.4 billion. This phase indicates a strengthening in the company's liquid assets. However, from March 2022 onward, total quick assets exhibited fluctuations with periods of decline and recovery. The amount peaked again at around $11.5 billion in mid-2023 before trending downward towards the end of 2025, where the value reduced to approximately $7.3 billion. This suggests a possible tightening of liquidity or asset management adjustments in the later quarters.
- Current Liabilities
- Current liabilities decreased significantly from roughly $2.4 billion in early 2020 to a low of $1.7 billion by March 2021, indicating a reduction in short-term obligations. Following this trough, liabilities generally increased, reaching a peak of about $3.7 billion by late 2024, before declining sharply again to just under $2.5 billion by mid-2025. The variability in current liabilities suggests active management or volatile short-term obligations during the period.
- Quick Ratio
- The quick ratio rose sharply from 2.54 in March 2020 to a high of 4.86 by March 2021, demonstrating significantly improved short-term liquidity and the company's enhanced capability to cover current liabilities with its most liquid assets. After this peak, the ratio experienced a declining trend with occasional minor recoveries, dropping to approximately 2.93 by mid-2025. This decline reflects a reduced buffer of highly liquid assets relative to current liabilities, which may indicate increasing short-term financial pressures or strategic changes in asset allocation.
Overall, the data portrays an initial period of strengthening liquidity and improved ability to meet short-term liabilities, followed by heightened fluctuations in both liquid assets and current liabilities. The declining quick ratio towards the end of the analyzed timeframe may warrant further attention to ensure continued short-term financial stability.
Cash Ratio
Texas Instruments Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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: 2025-06-30), 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 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit an overall upward trend from the beginning of the period in March 2020 through December 2021, increasing from approximately $4.7 billion to nearly $9.7 billion. This growth indicates a significant accumulation of cash reserves during this timeframe. However, starting in early 2022, there is a notable fluctuation with cash assets experiencing a decline and recovery pattern. For instance, from March 2022 to December 2022, values hover around $8.4 billion to $9.1 billion, showing some volatility but no clear upward momentum. From 2023 onwards, a gradual decrease is evident, culminating in a sharp drop by mid-2025 to around $5.4 billion. This declining trend in cash assets over the last quarters may suggest increased cash outflows or investment activities.
- Current Liabilities
- Current liabilities display moderate variability throughout the observed periods. Initially, liabilities decrease from around $2.4 billion in March 2020 to approximately $1.7 billion by March 2021, indicating a reduction in short-term obligations. Thereafter, liabilities increase steadily, reaching a peak of about $3.7 billion in late 2023 and early 2024. Subsequently, liabilities fall sharply towards mid-2025 to nearly $2.5 billion. This pattern reveals fluctuating working capital requirements, which could be related to operational cycles or strategic financial management.
- Cash Ratio
- The cash ratio, representing the proportion of total cash assets to current liabilities, consistently remains above 1.9 throughout the period, reflecting a strong liquidity position. Between March 2020 and December 2021, the ratio trends upward, peaking above 4.0 in the third quarter of 2021, which signifies a robust capacity to cover short-term liabilities with cash. Following this peak, the ratio shows a gradual decline, dropping below 2.2 by mid-2025. Despite the decline, the ratio maintains levels generally above 2.0, suggesting that liquidity remains ample even as the cash balance decreases and liabilities vary.
- Summary Insights
- The data reveal that the company maintained a solid liquidity position over the analyzed period, with large cash reserves relative to short-term obligations. The significant growth in cash assets during 2020 and 2021 was accompanied by a reduction in current liabilities, enhancing the cash ratio. The subsequent period to mid-2025 shows a correction phase with decreased cash reserves and increased liabilities temporarily, resulting in a lowering but still healthy cash ratio. These trends may reflect strategic operational or investment decisions impacting cash flows and financing needs. Continuous monitoring of these indicators is advisable to ensure sustained liquidity strength.