Certara Inc (CERT)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Cash	US$ in thousands	234,951	236,586	185,797
Short-term investments	US$ in thousands	—	4,638	57
Receivables	US$ in thousands	84,857	82,584	69,555
Total current liabilities	US$ in thousands	130,023	103,158	92,225
Quick ratio		2.46	3.14	2.77

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($234,951K + $—K + $84,857K) ÷ $130,023K
= 2.46

The quick ratio measures Certara Inc's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger ability to cover short-term liabilities.

Over the past four years, Certara Inc's quick ratio has shown some fluctuations:

- In 2020, the quick ratio was at its highest point at 4.57, indicating a robust ability to cover short-term obligations with liquid assets.
- In 2021, the quick ratio decreased to 2.97, signaling a slight decline in the company's liquidity position.
- By 2022, there was an improvement in the quick ratio to 3.29, reflecting a stronger ability to meet short-term liabilities with liquid assets compared to the previous year.
- In 2023, the quick ratio further increased to 2.62, showing an improvement relative to 2021 but a decline compared to 2022.

Overall, although there have been fluctuations in Certara Inc's quick ratio over the past four years, the company has generally maintained a healthy liquidity position, with the ability to cover short-term obligations with its liquid assets. It is essential for investors and stakeholders to monitor this ratio to ensure the company's continued ability to meet its short-term financial commitments.