Certara Inc (CERT)

Current 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
Total current assets	US$ in thousands	340,201	369,777	353,044	348,254	342,252	305,092	286,019	275,186	274,727	504,849	344,808	347,561
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
Current ratio		2.62	3.51	3.43	3.71	3.32	3.99	3.51	3.37	2.98	7.25	5.82	5.48

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $340,201K ÷ $130,023K
= 2.62

Certara Inc's current ratio has been relatively stable over the past eight quarters, ranging from a low of 2.62 in Q4 2023 to a high of 3.99 in Q3 2022. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities, which is generally seen as a positive sign of financial health.

In the most recent quarter, Q4 2023, Certara Inc's current ratio stood at 2.62, indicating that the company had $2.62 in current assets for every $1 in current liabilities. While this is still above the critical threshold of 1, it has decreased compared to the previous quarters. A decreasing current ratio may suggest that the company may be facing challenges in managing its short-term obligations or that its current asset levels have declined relative to its current liabilities.

Overall, Certara Inc's current ratio has shown some fluctuation but has generally remained at healthy levels, providing a satisfactory cushion to cover its short-term obligations. It is important for the company to continue monitoring its current ratio and manage its current assets effectively to ensure ongoing liquidity and financial stability.