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