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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Cash ratio | 1.81 | 2.58 | 2.44 | 2.65 | 2.34 | 2.80 | 2.40 | 2.26 | 2.01 |
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.
Peer comparison
Dec 31, 2023