Cerence Balance Sheet Health
Financial Health criteria checks 4/6
Cerence has a total shareholder equity of $731.1M and total debt of $277.4M, which brings its debt-to-equity ratio to 37.9%. Its total assets and total liabilities are $1.3B and $533.8M respectively. Cerence's EBIT is $41.8M making its interest coverage ratio 4.4. It has cash and short-term investments of $110.5M.
Key information
37.9%
Debt to equity ratio
US$277.42m
Debt
| Interest coverage ratio | 4.4x |
| Cash | US$110.52m |
| Equity | US$731.13m |
| Total liabilities | US$533.78m |
| Total assets | US$1.26b |
Recent financial health updates
Cerence (NASDAQ:CRNC) Seems To Use Debt Quite Sensibly
Apr 09
Cerence (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 10We Think Cerence (NASDAQ:CRNC) Is Taking Some Risk With Its Debt
Jan 05Cerence (NASDAQ:CRNC) Seems To Use Debt Quite Sensibly
May 17Recent updates
Cerence (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 08Cerence (NASDAQ:CRNC) Hasn't Managed To Accelerate Its Returns
Jun 24Cerence: Facing Unprecedented Competition From Apple
Jun 10Cerence (NASDAQ:CRNC) Seems To Use Debt Quite Sensibly
May 17Cerence's (NASDAQ:CRNC) Returns Have Hit A Wall
Mar 21Headwaters Capital - Cerence Inc.: The Swiss Tech Platform Driving Digital Penetration In Autos
Mar 17Cerence: Disappointing Guidance But Already Profitable
Mar 06Analysts Just Made A Major Revision To Their Cerence Inc. (NASDAQ:CRNC) Revenue Forecasts
Feb 13Here's Why Cerence (NASDAQ:CRNC) Can Manage Its Debt Responsibly
Feb 01Cerence's Artificial Intelligence Assistants Could Make The Share Price Spike Up
Dec 16Cerence (NASDAQ:CRNC) May Have Issues Allocating Its Capital
Dec 16Financial Position Analysis
Short Term Liabilities: CRNC's short term assets ($228.4M) exceed its short term liabilities ($120.0M).
Long Term Liabilities: CRNC's short term assets ($228.4M) do not cover its long term liabilities ($413.8M).
Debt to Equity History and Analysis
Debt Level: CRNC's net debt to equity ratio (22.8%) is considered satisfactory.
Reducing Debt: CRNC's debt to equity ratio has increased from 0% to 37.9% 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 48.9% per year.