Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Cadence Design Systems Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.24 | 1.27 | 1.77 | 1.86 | 1.74 | |
| Quick ratio | 1.02 | 1.02 | 1.47 | 1.60 | 1.51 | |
| Cash ratio | 0.72 | 0.66 | 1.13 | 1.17 | 1.06 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Cadence Design Systems Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Cadence Design Systems Inc. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Cadence Design Systems Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Current Ratio
Cadence Design Systems Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | 1,976,217) | 1,706,767) | 1,715,769) | 1,478,587) | 1,169,343) | |
| Current liabilities | 1,590,867) | 1,347,696) | 971,225) | 796,808) | 672,391) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.24 | 1.27 | 1.77 | 1.86 | 1.74 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Accenture PLC | 1.30 | 1.23 | 1.25 | 1.40 | 1.40 | |
| Adobe Inc. | 1.34 | 1.11 | 1.25 | 1.48 | 0.79 | |
| CrowdStrike Holdings Inc. | 1.73 | 1.83 | 2.65 | 2.38 | — | |
| International Business Machines Corp. | 0.96 | 0.92 | 0.88 | 0.98 | 1.02 | |
| Intuit Inc. | 1.47 | 1.39 | 1.94 | 2.26 | 1.83 | |
| Microsoft Corp. | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | |
| Oracle Corp. | 0.91 | 1.62 | 2.30 | 3.03 | 2.49 | |
| Palantir Technologies Inc. | 5.55 | 5.17 | 4.34 | 3.74 | — | |
| Palo Alto Networks Inc. | 0.78 | 0.77 | 0.91 | 1.91 | 1.78 | |
| Salesforce Inc. | 1.02 | 1.05 | 1.23 | 1.08 | 0.95 | |
| ServiceNow Inc. | 1.06 | 1.11 | 1.05 | 1.21 | 1.03 | |
| Synopsys Inc. | 1.15 | 1.09 | 1.16 | 1.19 | 0.99 | |
| Current Ratio, Sector | ||||||
| Software & Services | 1.38 | 1.44 | 1.68 | 1.93 | 1.85 | |
| Current Ratio, Industry | ||||||
| Information Technology | 1.41 | 1.37 | 1.55 | 1.71 | 1.66 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 1,976,217 ÷ 1,590,867 = 1.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Cadence Design Systems Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Cadence Design Systems Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,008,152) | 882,325) | 1,088,940) | 928,432) | 705,210) | |
| Receivables, net | 489,224) | 486,710) | 337,596) | 338,487) | 304,546) | |
| Short-term investments | 130,359) | 4,490) | 5,956) | 4,452) | 4,600) | |
| Total quick assets | 1,627,735) | 1,373,525) | 1,432,492) | 1,271,371) | 1,014,356) | |
| Current liabilities | 1,590,867) | 1,347,696) | 971,225) | 796,808) | 672,391) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.02 | 1.02 | 1.47 | 1.60 | 1.51 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Accenture PLC | 1.18 | 1.12 | 1.14 | 1.29 | 1.29 | |
| Adobe Inc. | 1.22 | 1.00 | 1.11 | 1.34 | 0.70 | |
| CrowdStrike Holdings Inc. | 1.58 | 1.68 | 2.50 | 2.18 | — | |
| International Business Machines Corp. | 0.82 | 0.76 | 0.69 | 0.83 | 0.87 | |
| Intuit Inc. | 1.25 | 1.17 | 1.65 | 2.04 | 1.44 | |
| Microsoft Corp. | 1.54 | 1.57 | 1.90 | 2.33 | 2.35 | |
| Oracle Corp. | 0.74 | 1.43 | 2.15 | 2.83 | 2.31 | |
| Palantir Technologies Inc. | 5.41 | 4.92 | 4.11 | 3.59 | — | |
| Palo Alto Networks Inc. | 0.72 | 0.75 | 0.88 | 1.85 | 1.72 | |
| Salesforce Inc. | 0.90 | 0.93 | 1.11 | 0.95 | 0.82 | |
| ServiceNow Inc. | 1.00 | 1.06 | 1.01 | 1.16 | 0.98 | |
| Synopsys Inc. | 0.85 | 0.85 | 0.89 | 0.94 | 0.73 | |
| Quick Ratio, Sector | ||||||
| Software & Services | 1.21 | 1.26 | 1.52 | 1.76 | 1.69 | |
| Quick Ratio, Industry | ||||||
| Information Technology | 1.12 | 1.09 | 1.30 | 1.47 | 1.44 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,627,735 ÷ 1,590,867 = 1.02
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Cadence Design Systems Inc. quick ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Cash Ratio
Cadence Design Systems Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 28, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | 1,008,152) | 882,325) | 1,088,940) | 928,432) | 705,210) | |
| Short-term investments | 130,359) | 4,490) | 5,956) | 4,452) | 4,600) | |
| Total cash assets | 1,138,511) | 886,815) | 1,094,896) | 932,884) | 709,810) | |
| Current liabilities | 1,590,867) | 1,347,696) | 971,225) | 796,808) | 672,391) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.72 | 0.66 | 1.13 | 1.17 | 1.06 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Accenture PLC | 0.50 | 0.45 | 0.52 | 0.67 | 0.55 | |
| Adobe Inc. | 0.95 | 0.75 | 0.84 | 1.09 | 0.51 | |
| CrowdStrike Holdings Inc. | 1.28 | 1.42 | 2.22 | 1.85 | — | |
| International Business Machines Corp. | 0.39 | 0.28 | 0.22 | 0.36 | 0.24 | |
| Intuit Inc. | 0.97 | 0.90 | 1.46 | 2.00 | 1.39 | |
| Microsoft Corp. | 1.07 | 1.10 | 1.47 | 1.89 | 1.93 | |
| Oracle Corp. | 0.44 | 1.12 | 1.93 | 2.50 | 2.03 | |
| Palantir Technologies Inc. | 4.93 | 4.48 | 3.83 | 3.33 | — | |
| Palo Alto Networks Inc. | 0.31 | 0.44 | 0.57 | 1.39 | 1.37 | |
| Salesforce Inc. | 0.48 | 0.48 | 0.67 | 0.54 | 0.39 | |
| ServiceNow Inc. | 0.66 | 0.71 | 0.67 | 0.83 | 0.61 | |
| Synopsys Inc. | 0.53 | 0.56 | 0.65 | 0.58 | 0.42 | |
| Cash Ratio, Sector | ||||||
| Software & Services | 0.77 | 0.82 | 1.11 | 1.33 | 1.23 | |
| Cash Ratio, Industry | ||||||
| Information Technology | 0.70 | 0.66 | 0.89 | 1.07 | 1.01 | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-28).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,138,511 ÷ 1,590,867 = 0.72
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Cadence Design Systems Inc. cash ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |