Cognex Corporation (CGNX)

Current 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
Total current assets	US$ in thousands	613,367	672,082	681,017	661,530	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
Total current liabilities	US$ in thousands	169,380	170,736	168,783	188,102	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
Current ratio		3.62	3.94	4.03	3.52	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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $613,367K ÷ $169,380K
= 3.62

Cognex Corporation's current ratio has demonstrated some fluctuations over the past few years, ranging from a low of 3.37 on March 31, 2023, to a high of 4.99 on September 30, 2023. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio above 1 indicates the company has more current assets than current liabilities.

The current ratio peaked at 4.99 on September 30, 2023, indicating the company had almost 5 times more current assets than current liabilities at that point. This suggests a healthy liquidity position, providing a buffer to meet its short-term obligations.

However, the ratio experienced a decline in subsequent periods, dropping to 3.52 on March 31, 2024, before recovering slightly to 4.03 on June 30, 2024. This downward trend may indicate a potential strain on the company's liquidity position or changes in its working capital management.

Overall, Cognex Corporation's current ratio has displayed some variability, with peaks indicating strong liquidity and troughs suggesting potential challenges in meeting short-term obligations. It is important for the company to closely monitor and manage its current assets and liabilities to maintain a healthy liquidity position over time.