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.