Cognex Corporation (CGNX)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 186,094 202,655 181,374 186,161 269,073
Short-term investments US$ in thousands 59,956 129,392 218,759 137,455 103,240
Receivables US$ in thousands 146,414 116,566 127,596 134,338 131,328
Total current liabilities US$ in thousands 169,380 151,884 187,708 188,589 132,297
Quick ratio 2.32 2.95 2.81 2.43 3.81

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($186,094K + $59,956K + $146,414K) ÷ $169,380K
= 2.32

The quick ratio of Cognex Corporation, a key liquidity ratio, has shown fluctuations over the past five years. Starting at 3.81 on December 31, 2020, the quick ratio decreased to 2.43 by December 31, 2021, indicating a potential decrease in the company's ability to cover its short-term obligations with its most liquid assets. However, from December 31, 2021, to December 31, 2022, the quick ratio improved to 2.81, suggesting a better ability to meet short-term liabilities. This improvement continued into December 31, 2023, with a quick ratio of 2.95, indicating a further enhancement in liquidity. However, by December 31, 2024, the quick ratio dropped to 2.32, signaling a slight decrease in the company's short-term liquidity position compared to the previous year. Overall, Cognex Corporation's quick ratio has demonstrated variability, reflecting fluctuations in its ability to cover immediate financial obligations with its most liquid assets.