Current Ratio

The current ratio of 1.47x measures a company’s ability to pay short-term obligations with its short-term assets; a ratio above 1.0x typically suggests sufficient liquidity, while lower ratios may indicate strain.

CDNS’s 1.47x sits below the sector median of 1.86x and places it in the 36th percentile among technology peers, meaning 64% of peers have a higher current ratio. Both the year-over-year change and quarter-over-quarter change are marked as N/A, and there is no trend data available for the last eight quarters, so no directional insight can be drawn. The combination of a below-median level with no trend data implies that liquidity risk is not elevated but also not easily improving—investors see a stable but relatively weaker liquidity position. This metric generally supports the overall NEUTRAL verdict because the ratio is adequate but unexceptional relative to peers, offering neither a clear strength nor a weakness that would shift the rating.

Frequently Asked Questions

Closest Sector Peers