Cognex Corporation (CGNX)

Cash 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 and cash equivalents	US$ in thousands	202,655	395,501	177,485	164,171	181,374	266,004	177,046	165,769	186,161	203,479	217,037	242,688	269,073	298,356	286,021	239,197	171,431	121,701	89,104	105,296
Short-term investments	US$ in thousands	129,392	117,147	191,474	216,703	218,759	208,430	182,634	148,966	137,455	189,113	190,747	143,233	103,240	95,365	143,084	159,244	240,470	292,072	364,487	441,337
Total current liabilities	US$ in thousands	151,884	169,704	180,462	213,977	187,708	161,278	192,241	195,126	188,589	165,137	204,934	159,680	132,297	139,398	144,581	150,644	120,477	81,215	85,683	93,045
Cash ratio		2.19	3.02	2.04	1.78	2.13	2.94	1.87	1.61	1.72	2.38	1.99	2.42	2.81	2.82	2.97	2.64	3.42	5.09	5.29	5.87

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 some fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

In this case, the cash ratio ranged from a low of 1.94 in Q1 2022 to a high of 3.60 in Q3 2022. The average cash ratio over the eight quarters is approximately 2.62. This suggests that, on average, Cognex Corp. had enough cash and cash equivalents to cover over two times its short-term liabilities during this period.

It is worth noting that the highest and lowest values of the cash ratio occurred in Q3 2022 and Q1 2022, respectively. The significant increase in the cash ratio in Q3 2022 compared to the previous quarters indicates a strong cash position during that period. On the other hand, the decrease in the cash ratio in Q1 2022 may suggest a temporary strain on the company's liquidity.

Overall, the cash ratio trend for Cognex Corp. demonstrates a relatively healthy liquidity position, with some variability in the short term. Further analysis of the company's cash management practices and cash flow generation would provide additional insights into its financial health and ability to meet its obligations.