Cerence (Cerence) Debt-to-Equity : 0.40 (As of Dec. 2023)

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What is Cerence Debt-to-Equity?

Cerence's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $5.7 Mil. Cerence's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $285.5 Mil. Cerence's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $731.1 Mil. Cerence's debt to equity for the quarter that ended in Dec. 2023 was 0.40.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

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

CRNC' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.28 Med: 0.3 Max: 0.42
Current: 0.4

During the past 8 years, the highest Debt-to-Equity Ratio of Cerence was 0.42. The lowest was 0.28. And the median was 0.30.

CRNC's Debt-to-Equity is ranked worse than
65.47% of 2221 companies
in the Software industry
Industry Median: 0.21 vs CRNC: 0.40

Cerence Debt-to-Equity Historical Data

The historical data trend for Cerence's Debt-to-Equity 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.

* Premium members only.

Cerence Debt-to-Equity Chart

Cerence Annual Data

Trend

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Debt-to-Equity

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0.31

0.28

0.40

0.42

Cerence Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															0.41	0.42	0.42	0.42	0.40

Competitive Comparison of Cerence's Debt-to-Equity

For the Software - Application subindustry, Cerence's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity Distribution in the Software Industry

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

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

Cerence Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Cerence's Debt to Equity Ratio for the fiscal year that ended in Sep. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(5.434	+	283.898)	/	694.875
	=	0.42

Cerence's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(5.676	+	285.485)	/	731.133
	=	0.40

Cerence (NAS:CRNC) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Cerence Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Cerence's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Cerence (Cerence) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Cerence Inc (NAS:CRNC) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

0S6:Germany

Address

1 Burlington Woods Drive, Suite 301A, 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.

Executives

Stefan Ortmanns	officer: Executive Vice President	WALTER-SCHEIBLER-STR 24, MONSCHAU 2M 52156
Iqbal Arshad	officer: EVP, CTO	CERENCE INC., 1 BURLINGTON WOODS DRIVE, SUITE 301A, BURLINGTON MA 01803
Thomas L Beaudoin	director	NUANCE COMMUNICATIONS, INC., 1 WAYSIDE ROAD, BURLINGTON MA 01803
Marcy S Klevorn	director	ONE AMERICAN ROAD, DEARBORN MI 48126
Prateek Kathpal	officer: EVP & CTO	1 BURLINGTON WOODS DRIVE, BURLINGTON MA 01803
Christophe Couvreur	officer: SVP, Core BU	1 BURLINGTON WOODS DRIVE, BURLINGTON MA 01803
Douglas Lee Davis	director	1150 N. ALMA SCHOOL ROAD, MESA AZ 85201
Marc Montagner	officer: Chief Financial Officer	C/O ENDURANCE INT'L GROUP HOLDINGS, INC., 10 CORPORATE DRIVE, SUITE 300, BURLINGTON MA 01803
Sanjay Dhawan	director, officer: Chief Executive Officer	C/O HARMAN INTERNATIONAL INDUSTRIES, INC, 400 ATLANTIC STREET, STAMFORD CT 06901
Leanne Fitzgerald	director, officer: Vice President and Secretary	1 WAYSIDE ROAD, BURLINGTON MA 01803
Mark J Gallenberger	officer: President	LTX-CREDENCE CORPORATION, 825 UNIVERSITY AVENUE, NORWOOD MA 02062
Alfred A Nietzel	director	ONE ADP BOULEVARD, ROSELAND NJ 07068
Kristi Ann Matus	director	C/O EQUITABLE HOLDINGS, INC., 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Marianne Budnik	director	C/O ACME PACKET, INC., 100 CROSBY DRIVE, BEDFORD MA 01730
Sanjay K Jha	director	15 WAYSIDE ROAD, BURLINGTON MA 01803