Cerence Balance Sheet Health
Financial Health criteria checks 3/6
Cerence has a total shareholder equity of $154.2M and total debt of $280.4M, which brings its debt-to-equity ratio to 181.8%. Its total assets and total liabilities are $674.0M and $519.8M respectively. Cerence's EBIT is $59.9M making its interest coverage ratio 8.1. It has cash and short-term investments of $121.0M.
Key information
181.8%
Debt to equity ratio
US$280.38m
Debt
| Interest coverage ratio | 8.1x |
| Cash | US$120.96m |
| Equity | US$154.20m |
| Total liabilities | US$519.78m |
| Total assets | US$673.98m |
Recent financial health updates
These 4 Measures Indicate That Cerence (NASDAQ:CRNC) Is Using Debt Extensively
Nov 12
Does Cerence (NASDAQ:CRNC) Have A Healthy Balance Sheet?
Aug 05Cerence (NASDAQ:CRNC) Seems To Use Debt Quite Sensibly
Apr 09Cerence (NASDAQ:CRNC) Is Making Moderate Use Of Debt
Nov 16Cerence (NASDAQ:CRNC) Is Carrying A Fair Bit Of Debt
Aug 18Cerence (NASDAQ:CRNC) Is Making Moderate Use Of Debt
May 10Recent updates
These 4 Measures Indicate That Cerence (NASDAQ:CRNC) Is Using Debt Extensively
Nov 12Investors Will Want Cerence's (NASDAQ:CRNC) Growth In ROCE To Persist
Oct 17Cerence Inc. (NASDAQ:CRNC) Looks Inexpensive After Falling 31% But Perhaps Not Attractive Enough
Sep 21Does Cerence (NASDAQ:CRNC) Have A Healthy Balance Sheet?
Aug 05Cerence: Near-Term Uncertainties Have Dimmed Its Promising Growth Outlook
Jul 26Cerence (NASDAQ:CRNC) Is Looking To Continue Growing Its Returns On Capital
Jul 03Revenues Working Against Cerence Inc.'s (NASDAQ:CRNC) Share Price Following 43% Dive
Jun 10An Intrinsic Calculation For Cerence Inc. (NASDAQ:CRNC) Suggests It's 48% Undervalued
May 31The Market Doesn't Like What It Sees From Cerence Inc.'s (NASDAQ:CRNC) Revenues Yet As Shares Tumble 35%
Apr 26Cerence (NASDAQ:CRNC) Seems To Use Debt Quite Sensibly
Apr 09Cerence (NASDAQ:CRNC) Hasn't Managed To Accelerate Its Returns
Mar 13Cerence: Poised For Rebound With Strong Pipeline
Mar 05Cerence Inc.'s (NASDAQ:CRNC) Shares Lagging The Industry But So Is The Business
Jan 04Cerence (NASDAQ:CRNC) Is Making Moderate Use Of Debt
Nov 16Cerence (NASDAQ:CRNC) Is Carrying A Fair Bit Of Debt
Aug 18Cerence (NASDAQ:CRNC) Is Making Moderate Use Of Debt
May 10Are Investors Undervaluing Cerence Inc. (NASDAQ:CRNC) By 43%?
Apr 03Cerence's (NASDAQ:CRNC) Returns On Capital Tell Us There Is Reason To Feel Uneasy
Jan 27We Think Cerence (NASDAQ:CRNC) Is Taking Some Risk With Its Debt
Jan 05Cerence to develop next-generation co-pilot for Renault vehicles
Oct 17Return Trends At Cerence (NASDAQ:CRNC) Aren't Appealing
Oct 13Cerence: Promising Industry, Vulnerable Company
Sep 23Bearish: Analysts Just Cut Their Cerence Inc. (NASDAQ:CRNC) Revenue and EPS estimates
Aug 10Cerence Q3 2022 Earnings Preview
Aug 08Financial Position Analysis
Short Term Liabilities: CRNC's short term assets ($239.6M) exceed its short term liabilities ($183.2M).
Long Term Liabilities: CRNC's short term assets ($239.6M) do not cover its long term liabilities ($336.5M).
Debt to Equity History and Analysis
Debt Level: CRNC's net debt to equity ratio (103.4%) is considered high.
Reducing Debt: CRNC's debt to equity ratio has increased from 0% to 181.8% over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss-making in the past, we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable CRNC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: CRNC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 46.2% per year.