Cognex Corporation (CGNX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 2.95 | 3.80 | 2.88 | 1.78 | 2.81 | 2.94 | 1.87 | 1.61 | 2.43 | 2.38 | 1.99 | 2.42 | 2.81 | 2.82 | 2.97 | 2.64 | 3.42 | 5.09 | 5.29 | 5.87 |
| 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 |
Cognex Corp. has exhibited relatively stable liquidity positions over the past eight quarters, as indicated by its current, quick, and cash ratios. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has fluctuated within a range of 3.37 to 4.99. This indicates that Cognex has consistently maintained a comfortable level of current assets to cover its current liabilities, with the ratio peaking at 4.99 in Q3 2023.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has followed a similar trend to the current ratio, but at slightly lower levels. The quick ratio has ranged from 2.75 to 4.21 over the same period, demonstrating that Cognex has a stable ability to meet its short-term liabilities even when inventory is excluded.
Furthermore, the cash ratio, which evaluates the company's ability to settle its current liabilities using only its cash and cash equivalents, has also remained consistent. Cognex's cash ratio has fluctuated between 1.94 and 3.60, indicating that the company holds a sufficient amount of cash to cover its immediate obligations, with the ratio hitting its highest point in Q3 2022.
Overall, Cognex Corp. has maintained strong liquidity positions across its current, quick, and cash ratios over the past two years, suggesting that the company is well-positioned to meet its short-term financial commitments.
Additional liquidity measure
| 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 conversion cycle | days | 155.51 | 98.35 | 100.50 | 38.60 | 79.51 | 52.15 | 43.53 | 53.99 | 90.22 | 45.48 | 33.22 | 36.90 | 42.34 | 23.47 | 25.95 | 30.55 | 38.88 | 48.19 | 54.42 | 52.00 |
The cash conversion cycle of Cognex Corp. has been fluctuating over the quarters. It indicates the number of days it takes for the company to convert its investment in inventory and other resources into cash flows from sales. The trend shows an increasing cycle duration, with Q4 2023 at 268.33 days compared to 168.79 days in Q4 2022. This may imply that the company is taking longer to sell its inventory and collect cash from customers. The peak in Q4 2023 suggests a need for a closer examination of inventory management, sales processes, and collection policies to optimize the cash conversion cycle and enhance liquidity.