Cerence (FRA:0S6) Cash-to-Debt : 0.40 (As of Dec. 2024)

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What is Cerence Cash-to-Debt?

Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Cerence's cash to debt ratio for the quarter that ended in Dec. 2024 was 0.40.

If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Cerence couldn't pay off its debt using the cash in hand for the quarter that ended in Dec. 2024.

The historical rank and industry rank for Cerence's Cash-to-Debt or its related term are showing as below:

FRA:0S6' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.35 Med: 0.42 Max: 0.55
Current: 0.4

During the past 9 years, Cerence's highest Cash to Debt Ratio was 0.55. The lowest was 0.35. And the median was 0.42.

FRA:0S6's Cash-to-Debt is ranked worse than
78.38% of 2771 companies
in the Software industry
Industry Median: 2.58 vs FRA:0S6: 0.40

Cerence Cash-to-Debt Historical Data

The historical data trend for Cerence's Cash-to-Debt can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Cerence Cash-to-Debt Chart

Cerence Annual Data

Trend

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Cash-to-Debt

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0.50

0.55

0.40

0.38

0.43

Cerence Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Cash-to-Debt	Get a 7-Day Free Trial															0.37	0.37	0.41	0.43	0.40

Competitive Comparison of Cerence's Cash-to-Debt

For the Software - Application subindustry, Cerence's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cerence's Cash-to-Debt Distribution in the Software Industry

For the Software industry and Technology sector, Cerence's Cash-to-Debt distribution charts can be found below:

* The bar in red indicates where Cerence's Cash-to-Debt falls into.

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Cerence Cash-to-Debt Calculation

This is the ratio of a company's Cash, Cash Equivalents, Marketable Securities to its debt. The debt includes the Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation. This ratio measures the financial strength of a company. This ratio is updated quarterly.

Cerence's Cash to Debt Ratio for the fiscal year that ended in Sep. 2024 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	114.415	/	(82.551	+	183.457)
	=	0.43

Cerence's Cash to Debt Ratio for the quarter that ended in Dec. 2024 is calculated as:

Cash to Debt Ratio	=	Cash, Cash Equivalents, Marketable Securities	/	Total Debt
	=	Cash, Cash Equivalents, Marketable Securities	/	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)
	=	103.132	/	(60.912	+	196.996)
	=	0.40

Cerence (FRA:0S6) Cash-to-Debt Explanation

If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.

Cerence Cash-to-Debt Related Terms

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Cerence Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Cerence Inc (FRA:0S6) » Definitions » Cash-to-Debt

Comparable Companies

Traded in Other Exchanges

CRNC:USA CRNC:Mexico 0S6:Germany

Address

25 Mall Road, Suite 416, Burlington, MA, USA, 01803

Website

https://www.cerence.com

Cerence Inc is a United States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. The customers include all automobile original equipment manufacturers, or OEMs, or their tier 1 suppliers. The company's revenue is generated by selling software licenses and cloud-connected services. Geographically, it derives a majority of its revenue from the United States and also has a presence in Other Americas; Germany; Other Europe, the Middle East, Africa; Japan, and Other Asia-Pacific.

Cerence Headlines

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