Quick Ratio

The quick ratio measures a company’s ability to cover its short-term liabilities with its most liquid assets, excluding inventory; a ratio of 1.87x means TXN has $1.87 in highly liquid assets for every $1 of debt due within a year.

Compared to the TECHNOLOGY sector median of 0.44x, TXN’s ratio places it at the 100th percentile among peers, indicating it holds far more liquidity than most companies in its industry. The year-over-year change and quarter-over-quarter change are both reported as N/A, and there is no trend data available for the last eight quarters—only a single historical value of 1.87x. Because the metric’s current level is exceptionally high while the trend is unknown, there is no basis to judge improvement or deterioration, but the strong liquidity alone points to lower short-term default risk. This high quick ratio does not contradict the overall NEUTRAL verdict, as ample liquidity is a safety buffer rather than a catalyst for outperformance; the neutral view likely reflects other offsetting factors.

Frequently Asked Questions

Closest Sector Peers