Certara Inc (CERT)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 179,183 | 234,951 | 236,586 | 185,797 | 271,382 |
| Short-term investments | US$ in thousands | — | 4,473 | 4,638 | 57 | — |
| Total current liabilities | US$ in thousands | 146,088 | 130,023 | 103,158 | 92,225 | 75,345 |
| Cash ratio | 1.23 | 1.84 | 2.34 | 2.02 | 3.60 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($179,183K
+ $—K)
÷ $146,088K
= 1.23
The cash ratio of Certara Inc has shown a gradual decline over the past five years, from 3.60 in December 31, 2020, to 1.23 in December 31, 2024. This indicates that the company's ability to cover its short-term liabilities solely with its cash resources has weakened over the period. Although the cash ratio has decreased, it is important to note that the company still maintains a level of liquidity that allows it to meet its immediate financial obligations to some extent. Management may need to closely monitor the trend in the cash ratio and consider strategies to improve liquidity management in order to maintain financial stability and meet short-term cash requirements effectively.
Peer comparison
Dec 31, 2024