TXNNEUTRAL

TXN Current Ratio Analysis

4.86x

Higher than 100% of TECHNOLOGY sector peers

Updated 77h ago·SEC filings & market data

Key Takeaway

The current ratio of 4.86x means Texas Instruments holds $4.86 in current assets for every $1 of current liabilities, a measure of its ability to cover short-term obligations.

Sector Performance

100th percentile

TXN

4.86x

Sector Median

2.33x

Sector Avg

2.45x

Prior Period

4.46x(Jul 2026)

↑ Improving

📊

Deep Analysis

The current ratio of 4.86x means Texas Instruments holds $4.86 in current assets for every $1 of current liabilities, a measure of its ability to cover short-term obligations.

This is well above the sector median of 1.81x, placing TXN in the 100th percentile among technology peers. The year-over-year change is N/A, but the quarter-over-quarter change is +9.0%, with the ratio rising from 4.46x to 4.86x. That combination of a very high level and an upward trend points to ample liquidity, which lowers near-term default risk but may also imply cash is not being deployed aggressively. For an investor, this reduces balance-sheet stress while offering limited upside from idle capital. The metric supports the overall NEUTRAL verdict, since superior liquidity alone does not tilt the stock toward a positive or negative rating.

Frequently Asked Questions

What does the Current Ratio tell investors about TXN?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does TXN's Current Ratio compare to its sector?

TXN's Current Ratio of 4.86x compares to a TECHNOLOGY sector median of 2.33x, placing it in the 100th percentile.

Who are TXN's closest peers by Current Ratio?

The closest TECHNOLOGY peers by Current Ratio include: LRCX (2.63x), QCOM (2.02x), KLAC (2.88x), INTC (1.60x), NOW (0.70x).

📚

Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.