Certara Inc (CERT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 42.74 | 134.96 | 52.78 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.34 | 1.69 | 1.40 | 1.57 | 0.90 |
Based on the provided data, Certara Inc's activity ratios exhibit the following trends:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Certara Inc's inventory turnover has shown fluctuations over the years. It increased significantly from 52.78 in 2020 to 134.96 in 2021, indicating a substantial improvement in inventory management. However, there was a notable decrease to 42.74 in 2022.
2. Receivables Turnover:
- The receivables turnover ratio reflects the efficiency of collecting outstanding credit sales. In this case, the data indicates that Certara Inc did not report any values for receivables turnover from 2020 to 2024. This lack of information makes it difficult to assess the company's effectiveness in collecting receivables.
3. Payables Turnover:
- The payables turnover ratio assesses how efficiently a company pays its suppliers. Similar to receivables turnover, there is no data available for payables turnover for Certara Inc from 2020 to 2024. Without this information, it is challenging to evaluate the company's payment practices.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Certara Inc's working capital turnover has shown a generally increasing trend from 0.90 in 2020 to 2.34 in 2024. This indicates that the company has been able to generate more sales relative to its working capital over the years, reflecting improved operational efficiency and financial management.
In conclusion, while Certara Inc has demonstrated improvements in its inventory turnover and working capital turnover ratios, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity efficiency. Further information would be needed to provide a more detailed assessment of Certara Inc's working capital management and operational effectiveness.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 8.54 | 2.70 | 6.91 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Certara Inc's days of inventory on hand (DOH) ratio has shown fluctuating trends over the years. In 2020, the company held inventory for approximately 6.91 days, which decreased significantly to 2.70 days by the end of 2021. However, by the end of 2022, the DOH increased to 8.54 days, indicating a potential increase in the level of inventory relative to sales. Unfortunately, there is no data available for 2023 and 2024 for further analysis of this ratio.
On the other hand, there is no data provided for the days of sales outstanding (DSO) and number of days of payables for any of the years from 2020 to 2024. This lack of information makes it challenging to assess Certara Inc's efficiency in collecting receivables and managing payables.
Overall, based on the available information, Certara Inc's management of inventory levels seems to have been variable, with a notable decrease in inventory holding period from 2020 to 2021 followed by an increase in 2022. However, further insights on the company's receivables and payables management are needed to provide a more comprehensive analysis of its working capital efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 139.85 | 18.38 | 62.90 |
| Total asset turnover | 0.24 | 0.23 | 0.21 | 0.19 | 0.19 |
The long-term activity ratios of Certara Inc, as reflected by the fixed asset turnover and total asset turnover ratios, show varying trends over the five-year period.
1. Fixed Asset Turnover:
- As of December 31, 2020, the fixed asset turnover ratio was exceptionally high at 62.90, indicating that Certara Inc generated significant revenue relative to its investment in fixed assets.
- By December 31, 2021, the fixed asset turnover ratio decreased to 18.38, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.
- However, there was a sharp increase in the fixed asset turnover ratio to 139.85 by December 31, 2022, signaling a significant improvement in the utilization of fixed assets to generate sales.
- No data was available for fixed asset turnover for the years 2023 and 2024.
2. Total Asset Turnover:
- The total asset turnover remained relatively stable from December 31, 2020, to December 31, 2021, at 0.19, indicating that Certara Inc generated revenue at a consistent level compared to its total assets.
- There was a slight increase in the total asset turnover ratio to 0.21 by December 31, 2022, suggesting a slightly improved efficiency in utilizing total assets to generate revenue.
- The total asset turnover ratio continued to increase to 0.23 by December 31, 2023, and further to 0.24 by December 31, 2024, reflecting an increasing efficiency in generating sales with the total assets employed.
In summary, the fixed asset turnover ratio exhibited significant fluctuations, with periods of both efficiency improvement and decline in utilizing fixed assets for revenue generation. On the other hand, the total asset turnover ratio demonstrated a more stable and improving trend over the five-year period, indicating a generally increasing efficiency in generating revenue from the total assets of Certara Inc.