Cognex Corporation (CGNX)

Quick ratio

		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	US$ in thousands	202,655	395,501	177,485	164,171	181,374	266,004	177,046	165,769	186,161	203,479	217,037	242,688	269,073	298,356	286,021	239,197	171,431	121,701	89,104	105,296
Short-term investments	US$ in thousands	129,392	117,147	191,474	216,703	218,759	208,430	182,634	148,966	137,455	189,113	190,747	143,233	103,240	95,365	143,084	159,244	240,470	292,072	364,487	441,337
Receivables	US$ in thousands	116,566	132,130	150,107	—	127,596	—	—	—	134,338	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	151,884	169,704	180,462	213,977	187,708	161,278	192,241	195,126	188,589	165,137	204,934	159,680	132,297	139,398	144,581	150,644	120,477	81,215	85,683	93,045
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

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 measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates better liquidity and financial health.

Analyzing Cognex Corp.'s quick ratio over the past eight quarters shows fluctuations but generally strong liquidity levels. The quick ratio ranged from a low of 2.75 in Q1 2022 to a high of 4.21 in Q3 2022. Notably, the quick ratio has mostly been well above the ideal benchmark of 1, suggesting that Cognex Corp. has ample liquid assets to cover its short-term liabilities.

The consistent trend of quick ratios above 3 indicates that Cognex Corp. typically maintains a solid financial position, with a sufficient buffer of liquid assets to cover its current liabilities. This level of liquidity demonstrates the company's ability to quickly meet its financial obligations without relying heavily on selling inventory or other less liquid assets.

Overall, Cognex Corp.'s quick ratio performance reflects a stable financial position and strong liquidity management, which could help the company navigate potential short-term challenges.