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CRNC (Cerence) Quick Ratio : 1.22 (As of Sep. 2024)


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What is Cerence Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Cerence's quick ratio for the quarter that ended in Sep. 2024 was 1.22.

Cerence has a quick ratio of 1.22. It generally indicates good short-term financial strength.

The historical rank and industry rank for Cerence's Quick Ratio or its related term are showing as below:

CRNC' s Quick Ratio Range Over the Past 10 Years
Min: 0.68   Med: 1.22   Max: 1.74
Current: 1.22

During the past 9 years, Cerence's highest Quick Ratio was 1.74. The lowest was 0.68. And the median was 1.22.

CRNC's Quick Ratio is ranked worse than
64.7% of 2824 companies
in the Software industry
Industry Median: 1.64 vs CRNC: 1.22

Cerence Quick Ratio Historical Data

The historical data trend for Cerence's Quick Ratio 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 Quick Ratio Chart

Cerence Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Quick Ratio
Get a 7-Day Free Trial Premium Member Only 1.26 1.74 1.55 1.52 1.22

Cerence Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Quick Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.52 1.90 2.18 1.31 1.22

Competitive Comparison of Cerence's Quick Ratio

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

For the Software industry and Technology sector, Cerence's Quick Ratio distribution charts can be found below:

* The bar in red indicates where Cerence's Quick Ratio falls into.



Cerence Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

Cerence's Quick Ratio for the fiscal year that ended in Sep. 2024 is calculated as

Quick Ratio (A: Sep. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(265.509-0)/216.808
=1.22

Cerence's Quick Ratio for the quarter that ended in Sep. 2024 is calculated as

Quick Ratio (Q: Sep. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(265.509-0)/216.808
=1.22

* 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.


Cerence  (NAS:CRNC) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Cerence Quick Ratio Related Terms

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


Cerence Business Description

Traded in Other Exchanges
Address
25 Mall Road, Suite 416, Burlington, MA, USA, 01803
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
Thomas L Beaudoin director NUANCE COMMUNICATIONS, INC., 1 WAYSIDE ROAD, BURLINGTON MA 01803
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
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