Certara Inc (CERT)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Cash and cash equivalents	US$ in thousands	234,951	272,312	245,190	244,135	236,586	210,509	194,755	184,315	185,797	416,850	267,757	272,988
Short-term investments	US$ in thousands	—	—	5,667	4,261	4,638	3,429	680	—	—	—	—	—
Total current liabilities	US$ in thousands	130,023	105,427	102,896	93,816	103,158	76,530	81,545	81,617	92,225	69,634	59,249	63,372
Cash ratio		1.81	2.58	2.44	2.65	2.34	2.80	2.40	2.26	2.01	5.99	4.52	4.31

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($234,951K + $—K) ÷ $130,023K
= 1.81

Certara Inc's cash ratio has shown some fluctuations over the past eight quarters, ranging from a low of 2.41 in Q1 2022 to a high of 2.93 in Q3 2022. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding.

The trend in Certara Inc's cash ratio appears relatively stable overall, with the ratio predominantly staying above 2. This suggests that the company has a comfortable level of liquidity to cover its short-term liabilities. However, the slight variations in the ratio from quarter to quarter could be due to fluctuations in the company's cash holdings or changes in short-term liabilities.

It is important for Certara Inc to monitor its cash ratio closely to ensure that it maintains an adequate level of liquidity to meet its short-term obligations. Additionally, analyzing the underlying reasons for any significant changes in the cash ratio can provide insights into the company's financial health and management of its cash resources.