Certara Inc (CERT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.13 | 2.86 | 2.61 | 3.26 | 2.62 | 3.51 | 3.43 | 3.71 | 3.32 | 3.99 | 3.51 | 3.37 | 2.98 | 7.25 | 5.82 | 5.48 | 4.60 | 1.54 | 2.13 | — |
| Quick 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 | — |
| 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 | — |
Certara Inc's liquidity ratios show a healthy trend over the analyzed period. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has generally been above 1, indicating a satisfactory level of liquidity. The ratio has shown fluctuations but has mostly remained above 2, reaching a peak of 7.25 on September 30, 2021. This suggests the company has a strong ability to pay off its short-term obligations using its current assets.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been consistently above 1, indicating the company's ability to cover its short-term liabilities with its most liquid assets. The ratio has shown similar fluctuations to the current ratio but mostly remained above 2, reaching a high of 5.99 on September 30, 2021.
The cash ratio, which is the most conservative liquidity measure as it only considers cash and cash equivalents, has followed a similar trend to the quick ratio, staying above 1 in most periods. This indicates the company has a strong ability to meet its immediate short-term obligations using its cash and cash equivalents.
Overall, Certara Inc's liquidity ratios demonstrate a stable and strong liquidity position, with the company able to meet its short-term obligations comfortably throughout the analyzed period.
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 35.36 | 8.12 | 8.41 | 8.54 | 36.52 | 35.34 | 29.31 | 0.00 | 3.45 | 6.02 | 2.56 | 6.91 | 7.53 | 0.00 | 0.00 |
The cash conversion cycle of Certara Inc has shown fluctuations over the periods analyzed. The company's cash conversion cycle was consistently at 0.00 days during March, June, and December of 2020 and 2021, indicating that the company was able to efficiently convert its investments in inventory and receivables back into cash.
However, there was a notable increase in the cash conversion cycle in the following periods, particularly in March 2022, June 2022, and September 2023, where it reached 29.31 days, 35.34 days, and 35.36 days, respectively. This increase suggests that Certara Inc took longer to convert its investments in inventory and receivables into cash, which may indicate inefficiencies in its working capital management during those periods.
The company managed to reduce the cash conversion cycle to 8.41 days in March 2023, but it increased again to 36.52 days in September 2022 before declining to 8.12 days in June 2023. In the most recent period analyzed, December 2023, the cash conversion cycle was back to 0.00 days, indicating a positive trend towards a more efficient cash conversion cycle.
Overall, Certara Inc's cash conversion cycle has shown variability, with periods of efficient cash conversion followed by periods of increased cycle times. The company should continue monitoring and managing its working capital effectively to ensure optimal cash flow and liquidity management.