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.