CDNSNEUTRAL

CDNS Current Ratio Analysis

1.74x

Updated 105h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company’s ability to cover short-term obligations with short-term assets; at 1.74x, CDNS holds $1.74 in current assets for every $1 of current liabilities.

Sector Performance

71th percentile

CDNS

1.74x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

1.47x(Jul 2026)

↑ Improving

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Deep Analysis

The current ratio measures a company’s ability to cover short-term obligations with short-term assets; at 1.74x, CDNS holds $1.74 in current assets for every $1 of current liabilities.

That is above the sector median of 1.21x and places the company in the 74th percentile among sector peers, indicating stronger liquidity than most competitors. The metric’s year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change is +18.4%, rising from 1.47x. The combination of an above-median level and a sharp quarterly improvement points to lower short-term liquidity risk, offering a buffer against unexpected cash needs. This liquidity position supports the overall NEUTRAL verdict by confirming financial stability without signaling a reason to favor or avoid the stock.

Frequently Asked Questions

What does the Current Ratio tell investors about CDNS?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are CDNS's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x), TEL (1.88x).

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Learn More About Current Ratio

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Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.