Certara Inc (CERT)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 179,183 | 233,023 | 224,599 | 224,776 | 234,951 | 272,312 | 245,190 | 244,135 | 236,586 | 210,509 | 194,755 | 184,315 | 185,797 | 416,850 | 267,757 | 272,988 | 271,382 | 29,937 | 55,669 | -29,256 |
| Short-term investments | US$ in thousands | — | — | 5,026 | 5,033 | 4,473 | 5,880 | 5,667 | 4,261 | 4,638 | 3,429 | 680 | 181 | 57 | — | — | — | — | — | — | 58,512 |
| Total current liabilities | US$ in thousands | 146,088 | 122,705 | 129,123 | 100,629 | 130,023 | 105,427 | 102,896 | 93,816 | 103,158 | 76,530 | 81,545 | 81,617 | 92,225 | 69,634 | 59,249 | 63,372 | 75,345 | 60,341 | 56,981 | — |
| Cash ratio | 1.23 | 1.90 | 1.78 | 2.28 | 1.84 | 2.64 | 2.44 | 2.65 | 2.34 | 2.80 | 2.40 | 2.26 | 2.02 | 5.99 | 4.52 | 4.31 | 3.60 | 0.50 | 0.98 | — |
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 fluctuations over the past few years, ranging from a low of 0.50 as of September 30, 2020, to a high of 5.99 as of September 30, 2021. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
A higher cash ratio indicates that the company has more than enough cash to cover its short-term obligations, providing a buffer for unexpected expenses or economic downturns. Conversely, a lower cash ratio may signal potential liquidity challenges or the need to assess working capital management.
Certara's cash ratio has generally trended upwards since the initial drop in September 2020, reaching a peak of 5.99 on September 30, 2021. However, there has been some variability in the ratio since then, with fluctuations observed in subsequent quarters.
As of December 31, 2024, Certara's cash ratio stood at 1.23, indicating a decline from previous quarters. It would be advisable for stakeholders to monitor this metric closely to ensure that the company maintains a healthy level of liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2024