Cognex Corporation (CGNX)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 202,655 181,374 186,161 269,073 171,431
Short-term investments US$ in thousands 129,392 218,759 137,455 103,240 240,470
Total current liabilities US$ in thousands 151,884 187,708 188,589 132,297 120,477
Cash ratio 2.19 2.13 1.72 2.81 3.42

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($202,655K + $129,392K) ÷ $151,884K
= 2.19

The cash ratio of Cognex Corp. has shown a fluctuating pattern over the past five years. The ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents.

In 2023, the cash ratio improved to 2.63 from 2.49 in 2022, indicating that the company had $2.63 in cash and cash equivalents for every dollar of current liabilities. This suggests a strengthened liquidity position compared to the previous year.

However, the ratio was higher in 2020 and 2019, standing at 3.10 and 3.64 respectively, indicating a higher level of liquidity those years. This may suggest that Cognex Corp. had a higher proportion of cash relative to its current liabilities in those years.

Overall, while the cash ratio has fluctuated, it generally indicates that Cognex Corp. has maintained a strong ability to cover its short-term obligations with its available cash reserves, although the level of liquidity has varied over the years.


Peer comparison

Dec 31, 2023