Cerence
Financial ratios & Valuation

Forward Multiples (2025 – 2027)

202520262027
Price/Earnings ratio
-7.93-11.8913.38
Price/Sales ratio
1.651.491.30
Earnings per Share (EPS)
$-1.35$-0.9$0.8

Historical Multiples (2016 – 2024)

2016 2017 2018 2019 2020 2021 2022 2023 2024 TTM Median
Valuation Ratios
Price/Earnings ratio
26.5519.62157.766.15-86.2879.06-1.98-14.56-0.22-3.19-44.74
Price/Sales ratio
4.393.793.342.045.409.371.882.780.393.347.38
Price/Book Value ratio
0.910.930.930.581.853.510.861.170.921.472.68
Price/Cash Flow ratio
8.149.588.047.1239.7448.77-288.67109.257.62-112.7744.26
Price/Free Cash Flow ratio
8.7810.078.537.5169.0658.20-31.51345.0610.75-45.8563.63
Price/Earnings Growth ratio
N/A0.55-1.790.000.71-0.250.000.17-0.000.000.35
Dividend Yield
N/AN/AN/AN/A8.59%N/AN/AN/AN/AN/A4.29%
Profitability Indicator Ratios
Gross Profit Margin
71.31%71.99%70.04%67.72%67.28%73.89%70.36%67.68%73.68%68.74%67.50%
Operating Profit Margin
22.63%26.02%13.30%21.12%4.5%15.65%11.68%-9.23%-174.94%-65.98%10.07%
Pretax Profit Margin
22.38%25.82%13.28%4.70%-7.92%12.46%-60.61%-12.35%-176.35%-69.05%2.26%
Net Profit Margin
16.54%19.31%2.12%33.30%-6.25%11.85%-94.79%-19.10%-177.39%-104.70%2.79%
Effective Tax Rate
26.06%25.19%84.01%-607.70%21.07%4.92%-56.38%-54.59%-0.59%-51.60%12.99%
Return on Assets
2.70%3.53%0.42%6.87%-1.22%2.69%-23.57%-4.33%-83.72%-24.62%0.73%
Return On Equity
3.45%4.74%0.59%9.55%-2.15%4.44%-43.59%-8.09%-416.78%-38.61%1.14%
Return on Capital Employed
3.93%5.13%2.88%4.78%0.99%3.93%3.27%-2.36%-119.43%-17.68%2.46%
Liquidity Ratios
Current Ratio
N/AN/AN/A0.711.24N/AN/AN/AN/A1.460.97
Quick Ratio
0.740.850.680.711.241.731.541.521.221.051.48
Cash ratio
N/AN/AN/AN/A0.670.770.640.680.560.540.72
Days of Sales Outstanding
95.35110.3994.9878.3455.2942.9450.1775.9469.0976.4665.88
Days of Inventory outstanding
N/AN/AN/AN/A0.00N/A-0.00N/AN/AN/A0.00
Operating Cycle
95.35110.3994.9878.3455.2942.9450.1775.9469.0918.8549.12
Days of Payables Outstanding
39.0229.4228.6461.5628.5842.0238.9664.7116.5670.3445.07
Cash Conversion Cycle
56.3380.9766.3416.7726.710.9211.2111.2252.536.1213.82
Debt Ratios
Debt Ratio
N/AN/AN/AN/A0.160.150.200.210.130.460.31
Debt Equity Ratio
N/AN/AN/AN/A0.280.260.370.390.670.870.57
Long-term Debt to Capitalization
N/AN/AN/AN/A0.210.200.260.280.050.270.24
Total Debt to Capitalization
N/AN/AN/AN/A0.220.200.270.280.400.290.25
Interest Coverage Ratio
N/AN/AN/AN/A1.65N/AN/AN/AN/A-14.450.82
Cash Flow to Debt Ratio
N/AN/AN/AN/A0.160.27-0.000.020.17-0.030.21
Company Equity Multiplier
1.271.331.401.381.761.651.841.864.971.871.57
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.530.390.410.280.130.19-0.000.020.05-0.020.16
Free Cash Flow / Operating Cash Flow Ratio
0.920.950.940.940.570.839.150.310.702.450.76
Cash Flow Coverage Ratio
N/AN/AN/AN/A0.160.27-0.000.020.17-0.030.21
Short Term Coverage Ratio
N/AN/AN/AN/A7.1611.90-0.1917.150.19-0.519.53
Dividend Payout Ratio
N/AN/AN/AN/A-741.49%N/AN/AN/AN/AN/A-370.74%