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.