Certara Inc (CERT)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total current assets | US$ in thousands | 340,201 | 342,252 | 274,727 |
| Total current liabilities | US$ in thousands | 130,023 | 103,158 | 92,225 |
| Current ratio | 2.62 | 3.32 | 2.98 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $340,201K ÷ $130,023K
= 2.62
The current ratio measures a company's ability to cover its short-term obligations with its current assets. A higher current ratio indicates a greater ability to meet short-term liabilities.
Certara Inc's current ratio has exhibited fluctuations over the past four years. The ratio decreased from 4.60 in 2020 to 2.98 in 2021, suggesting a potential decrease in short-term liquidity. However, the ratio improved in 2022 to 3.32, indicating a stronger ability to meet current obligations.
In 2023, the current ratio further decreased to 2.62. While the ratio remains above 2, signaling that Certara Inc still has more than enough current assets to cover short-term liabilities, the declining trend over the past two years may raise concerns about the company's short-term liquidity position.
Overall, Certara Inc's current ratio analysis indicates fluctuations in short-term liquidity levels and highlights the importance of monitoring and managing current assets and liabilities effectively to ensure continued financial stability and solvency.
Peer comparison
Dec 31, 2023