Certara Inc (CERT)
Quick ratio
| 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 | US$ in thousands | 179,183 | 233,023 | 224,599 | 224,776 | 234,951 | 272,312 | 245,190 | 244,135 | 236,586 | 210,509 | 194,755 | 184,315 | 185,797 | 416,850 | 267,757 | 272,988 | 271,382 | 29,937 | 55,669 | -29,256 |
| Short-term investments | US$ in thousands | — | — | 5,026 | 5,033 | 4,473 | 5,880 | 5,667 | 4,261 | 4,638 | 3,429 | 680 | 181 | 57 | — | — | — | — | — | — | 58,512 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 146,088 | 122,705 | 129,123 | 100,629 | 130,023 | 105,427 | 102,896 | 93,816 | 103,158 | 76,530 | 81,545 | 81,617 | 92,225 | 69,634 | 59,249 | 63,372 | 75,345 | 60,341 | 56,981 | — |
| 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 | — |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($179,183K
+ $—K
+ $—K)
÷ $146,088K
= 1.23
The quick ratio reflects Certara Inc's ability to meet its short-term obligations with its most liquid assets. Looking at the historical trend, the quick ratio has exhibited some fluctuations over the past few years. From March 2020 to December 2020, there was a significant increase in the quick ratio from 0.98 to 3.60, indicating a stronger ability to cover short-term liabilities with quick assets.
The quick ratio continued to improve in the subsequent quarters, reaching its peak at 5.99 as of September 30, 2021. This high ratio suggests Certara had a significant amount of liquid assets compared to its current liabilities, highlighting a strong liquidity position. However, the quick ratio slightly declined in the following quarters but remained above 2, indicating continued financial strength in meeting short-term obligations.
As of December 31, 2024, the quick ratio decreased to 1.23, which may raise some concerns as it suggests Certara has fewer liquid assets available to cover its short-term liabilities. Overall, while the quick ratio has shown fluctuations, it has generally been above 1, indicating Certara Inc's ability to meet short-term obligations with its quick assets, albeit with some variability over time.
Peer comparison
Dec 31, 2024