Cadence Design Systems Inc (CDNS)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	1,008,150	961,982	873,925	916,963	882,325	1,026,050	1,029,540	1,134,750	1,088,940	1,013,820	847,160	742,981	928,432	1,306,560	1,189,190	946,285	705,210	655,216	633,415	538,898
Short-term investments	US$ in thousands	130,359	58,400	5,141	4,747	4,490	—	—	—	5,956	—	—	—	4,452	4,570	4,164	3,870	4,600	3,773	3,615	3,969
Total current liabilities	US$ in thousands	1,590,870	1,264,170	1,196,300	1,181,380	1,347,700	1,256,990	1,042,490	960,826	971,225	907,196	926,716	792,341	796,808	1,117,890	1,151,890	1,012,430	672,391	618,982	610,183	631,439
Cash ratio		0.72	0.81	0.73	0.78	0.66	0.82	0.99	1.18	1.13	1.12	0.91	0.94	1.17	1.17	1.04	0.94	1.06	1.06	1.04	0.86

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,008,150K + $130,359K) ÷ $1,590,870K
= 0.72

The cash ratio of Cadence Design Systems, Inc. has shown some fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

In Q1 2022, the cash ratio was relatively high at 1.31, suggesting the company had more than enough cash to cover its short-term liabilities. However, the ratio decreased in subsequent quarters, reaching its lowest point in Q4 2022 at 0.81. This decline may indicate that the company was utilizing its cash for other purposes or experiencing a decrease in cash reserves.

Subsequently, the cash ratio improved in Q1 and Q2 2023, indicating a healthier position in terms of liquidity. However, there was a slight decrease in Q3 2023, followed by a more significant decrease in Q4 2023 to 0.82. The lower ratio in the most recent quarter may raise concerns about the company's ability to cover its short-term obligations solely with cash on hand.

Overall, while the cash ratios have fluctuated, it is important for investors and analysts to monitor these trends to assess Cadence Design Systems, Inc.'s liquidity position and ability to meet its short-term financial commitments using its available cash resources.