Cognex Corporation (CGNX)

Current 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
Total current assets	US$ in thousands	678,997	846,991	718,382	722,163	717,699	787,467	734,758	672,880	639,798	672,067	692,878	625,571	601,691	628,136	646,475	595,287	607,231	625,781	678,874	773,245
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
Current ratio		4.47	4.99	3.98	3.37	3.82	4.88	3.82	3.45	3.39	4.07	3.38	3.92	4.55	4.51	4.47	3.95	5.04	7.71	7.92	8.31

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $678,997K ÷ $151,884K
= 4.47

Based on the data provided, the current ratio of Cognex Corp. has fluctuated over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

In Q4 2023, the current ratio stood at 4.47, indicating that Cognex Corp. had $4.47 in current assets for every $1 in current liabilities. This suggests a strong liquidity position, with ample current assets available to meet short-term obligations.

The current ratio peaked in Q3 2023 at 4.99, signaling an even stronger liquidity position compared to the other quarters. This could be attributed to an increase in current assets or a decrease in current liabilities during that period.

In Q2 2023, the current ratio declined to 3.98, but it remained above the industry average, indicating that the company still had a healthy liquidity position despite the decrease.

Q1 2023 saw a further decrease in the current ratio to 3.37, which may raise some concerns about the company's ability to cover its short-term obligations effectively. However, it is essential to consider industry norms and historical trends before drawing definitive conclusions.

Comparing these values to the previous quarters, it is evident that Cognex Corp. has experienced fluctuations in its liquidity position. These fluctuations could be influenced by changes in the company's current asset composition, management of current liabilities, or other operational factors.

Overall, while the current ratio has varied over the past eight quarters, Cognex Corp. generally maintained a healthy liquidity position, with the ratio mostly above 3. This suggests that the company is capable of meeting its short-term obligations and has sufficient current assets to support its operations.