Cadence Design Systems Inc (CDNS)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,644,030	1,008,150	882,325	1,088,940	928,432
Short-term investments	US$ in thousands	140,625	130,359	4,490	5,956	4,452
Total current liabilities	US$ in thousands	1,370,100	1,590,870	1,347,700	971,225	796,808
Cash ratio		2.03	0.72	0.66	1.13	1.17

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,644,030K + $140,625K) ÷ $1,370,100K
= 2.03

The cash ratio of Cadence Design Systems Inc has shown fluctuating trends over the past five years as follows:
- As of December 31, 2020, the cash ratio was 1.17, indicating that the company had $1.17 in cash and cash equivalents for every $1 of current liabilities.
- By December 31, 2021, the cash ratio decreased slightly to 1.13, suggesting a small reduction in the company's liquidity position.
- Subsequently, by December 31, 2022, the cash ratio dropped significantly to 0.66, implying a substantial decrease in the company's ability to cover its short-term obligations with its available cash resources.
- However, by the end of December 31, 2023, the cash ratio improved to 0.72, signaling a slight recovery in liquidity compared to the previous year.
- Notably, as of December 31, 2024, the cash ratio surged to 2.03, indicating a substantial increase in the company's liquidity position, with $2.03 in cash and cash equivalents for every $1 of current liabilities.

Overall, the cash ratio of Cadence Design Systems Inc has exhibited varying levels of liquidity over the past five years, reflecting changes in the company's cash reserves relative to its current liabilities. Investors and analysts may closely monitor this ratio to assess the company's short-term liquidity and ability to meet its immediate financial obligations.