Cognex Corporation (CGNX)
Quick ratio
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 202,655 | 181,374 | 186,161 | 269,073 | 171,431 |
Short-term investments | US$ in thousands | 129,392 | 218,759 | 137,455 | 103,240 | 240,470 |
Receivables | US$ in thousands | 116,566 | 127,596 | 134,338 | 131,328 | 108,229 |
Total current liabilities | US$ in thousands | 151,884 | 187,708 | 188,589 | 132,297 | 120,477 |
Quick ratio | 2.95 | 2.81 | 2.43 | 3.81 | 4.32 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($202,655K
+ $129,392K
+ $116,566K)
÷ $151,884K
= 2.95
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position and suggests that the company can easily cover its current liabilities.
Analyzing Cognex Corp.'s quick ratio over the past five years reveals a fluctuating trend. In 2023, the quick ratio stood at 3.40, indicating that the company had $3.40 of liquid assets available to cover each dollar of current liabilities. This represented an improvement from the previous year's quick ratio of 3.17.
Looking further back, the quick ratio for 2021 was 2.79, reflecting a slightly lower liquidity position compared to the preceding years. The quick ratio increased significantly in 2020, reaching 4.09, before declining to 4.54 in 2019.
Overall, Cognex Corp.'s quick ratio has generally been above 1, indicating sufficient liquidity to meet short-term obligations. However, the fluctuation in the quick ratio over the years suggests varying levels of liquidity management and efficiency in utilizing current assets to cover current liabilities. Additional analysis and comparison with industry benchmarks may provide further insights into the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023