Cadence Design Systems Inc (CDNS)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	4,016,080	4,099,920	2,196,390	1,929,930	1,976,220	1,824,460	1,643,050	1,698,540	1,706,770	1,670,480	1,657,620	1,734,900	1,715,770	1,543,010	1,457,070	1,349,730	1,478,590	1,736,480	1,639,780	1,399,510
Total current liabilities	US$ in thousands	1,370,100	1,674,990	1,533,720	1,465,740	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
Current ratio		2.93	2.45	1.43	1.32	1.24	1.44	1.37	1.44	1.27	1.33	1.59	1.81	1.77	1.70	1.57	1.70	1.86	1.55	1.42	1.38

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,016,080K ÷ $1,370,100K
= 2.93

Cadence Design Systems Inc's current ratio has exhibited fluctuations over the past few years. The company's current ratio generally remained above 1, indicating that it had more current assets than current liabilities to cover its short-term obligations. However, there were periods where the current ratio dropped below 1, which might raise concerns about the company's liquidity and ability to meet its short-term liabilities.

In particular, the current ratio showed an increasing trend from September 2020 to December 2021, peaking at 2.93 at the end of December 2024. This significant increase suggests that Cadence Design Systems Inc improved its liquidity position and strengthened its ability to cover its short-term obligations with current assets during this period.

It is important to note that while a current ratio below 1 may indicate liquidity issues, a very high current ratio, such as the peaks seen in the later periods, might imply inefficiency in asset management. Therefore, continued monitoring of Cadence Design Systems Inc's current ratio and its components is essential to assess its overall financial health and liquidity position.