Cognex Corporation (CGNX)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	186,094	197,075	176,626	138,859	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
Short-term investments	US$ in thousands	59,956	90,803	112,449	139,334	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
Receivables	US$ in thousands	146,414	160,085	161,163	141,293	116,566	132,130	150,107	—	127,596	—	—	—	134,338	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	169,380	170,736	168,783	188,102	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
Quick ratio		2.32	2.62	2.67	2.23	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

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, which measures the company's ability to meet its short-term obligations with its most liquid assets excluding inventory, has shown some fluctuations over the last few years.

From March 31, 2020, to June 30, 2021, the quick ratio was generally above 2, indicating a strong liquidity position. However, there was a decrease in the quick ratio from March 31, 2021, to June 30, 2022, dropping below 2, which could suggest a potential strain on the company's ability to cover its short-term obligations without relying on inventory.

Subsequently, there was a slight improvement in the quick ratio from September 30, 2022, to December 31, 2022. Despite some fluctuations, the quick ratio remained above 2, indicating that the company still had a relatively strong ability to meet its immediate financial obligations with its liquid assets.

The quick ratio peaked at 3.80 on September 30, 2023, indicating a significant increase in liquidity. However, this was followed by a decrease to 2.23 on March 31, 2024, showing some variability in the company's ability to quickly cover its short-term liabilities.

Overall, the quick ratio of Cognex Corporation has shown variability over the periods analyzed, with some fluctuations but generally remaining above 2, demonstrating a reasonably healthy liquidity position. It's important for the company to monitor this ratio going forward to ensure it maintains sufficient liquidity to meet its short-term obligations.