Cadence Design Systems Inc (CDNS)

Quick 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	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
Receivables	US$ in thousands	489,224	426,505	440,915	488,237	486,710	391,181	391,738	361,789	337,596	327,191	389,986	388,666	338,487	300,413	312,758	284,093	304,546	274,914	237,609	264,767
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
Quick ratio		1.02	1.14	1.10	1.19	1.02	1.13	1.36	1.56	1.47	1.48	1.33	1.43	1.60	1.44	1.31	1.22	1.51	1.51	1.43	1.28

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,008,150K + $130,359K + $489,224K) ÷ $1,590,870K
= 1.02

The quick ratio of Cadence Design Systems, Inc. has shown some fluctuation over the past eight quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets.

In Q4 2023, the quick ratio was 1.13, indicating that the company had $1.13 in liquid assets available to cover each dollar of current liabilities. This was a decrease from the previous quarter's ratio of 1.31.

Looking back over the past year, Q1 2022 had the highest quick ratio of 1.69, demonstrating a strong ability to meet short-term obligations with liquid assets. However, the ratio has since declined, with Q4 2022 recording a ratio of 1.17.

Overall, while the quick ratio has shown some variability, it generally indicates that Cadence Design Systems, Inc. has maintained a reasonable level of liquidity to cover its short-term obligations. However, management may need to monitor the trend closely to ensure the company remains in a strong financial position.