Cadence Design Systems Inc (CDNS)

Quick 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
Cash	US$ in thousands	2,644,030	2,786,040	1,058,960	1,012,420	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
Short-term investments	US$ in thousands	140,625	104,700	169,728	144,599	130,359	—	—	—	4,490	—	—	—	5,956	—	—	—	4,452	—	—	—
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Quick ratio		2.03	1.73	0.80	0.79	0.72	0.76	0.73	0.78	0.66	0.82	0.99	1.18	1.13	1.12	0.91	0.94	1.17	1.17	1.03	0.93

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,644,030K + $140,625K + $—K) ÷ $1,370,100K
= 2.03

The quick ratio of Cadence Design Systems Inc fluctuated over the periods indicated in the data provided. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1.0 typically indicates a company may have difficulty meeting its short-term liabilities. From March 31, 2020, to December 31, 2020, the quick ratio fluctuated between 0.93 and 1.17, showing some variability in the company's ability to cover its short-term obligations.

Subsequently, the quick ratio decreased in the first half of 2021, with values of 0.94 and 0.91, indicating a potential decrease in the company's ability to meet its short-term liabilities. However, starting from September 30, 2021, the quick ratio increased and remained above 1.0 until June 30, 2024. This indicates an improvement in the company's liquidity position, suggesting it had sufficient liquid assets to cover its short-term obligations during these periods.

Notably, there were fluctuations in the quick ratio in the latter half of 2024, with values of 1.73 and 2.03 on September 30, 2024, and December 31, 2024, respectively. These higher quick ratios may indicate an increase in the company's ability to cover its short-term obligations, signaling improved liquidity.

Overall, the trend in Cadence Design Systems Inc's quick ratio shows varying levels of liquidity over the periods provided, with improvements in some periods, potentially reflecting changes in the company's financial position and ability to meet short-term obligations effectively.