Cadence Design Systems Inc (CDNS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,976,220 | 1,706,770 | 1,715,770 | 1,478,590 | 1,169,340 |
| Total current liabilities | US$ in thousands | 1,590,870 | 1,347,700 | 971,225 | 796,808 | 672,391 |
| Current ratio | 1.24 | 1.27 | 1.77 | 1.86 | 1.74 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,976,220K ÷ $1,590,870K
= 1.24
The current ratio of Cadence Design Systems, Inc. has exhibited a declining trend over the past five years. As of December 31, 2023, the current ratio stands at 1.24, down from 1.77 at the beginning of 2022. This may indicate a decrease in the company's ability to cover its short-term obligations with its current assets. However, it is important to note that a current ratio above 1 signifies that the company has more current assets than current liabilities, indicating a healthy liquidity position overall. Further analysis is recommended to understand the factors contributing to the fluctuation in the current ratio over the years to assess the company's short-term financial health effectively.
Peer comparison
Dec 31, 2023