Quick Ratio

The Quick Ratio measures a company's ability to pay short-term liabilities using its most liquid assets (cash, marketable securities, receivables) excluding inventory.

Cadence's current Quick Ratio of 0.89x means for every $1 of short-term debt, it holds only $0.89 in liquid assets—a shortfall. This is below the Technology sector median of 1.33x, placing Cadence at the 27th percentile among peers, meaning 73% of sector companies show higher liquidity. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter decline of -26.4%; year-over-year change is not available. The combination of a below-median level and a persistently decreasing trend implies rising liquidity risk, as the company's buffer to cover immediate obligations is shrinking. This metric contradicts the overall NEUTRAL verdict, since a weakening liquidity position typically signals elevated financial vulnerability rather than balanced risk.

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