Certara Inc (CERT)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		—	—	—	—	—	10.32	44.93	43.39	42.74	9.99	10.33	12.45	—	105.81	60.66	142.70	52.78	48.46	—	—
DOH	days	—	—	—	—	—	35.36	8.12	8.41	8.54	36.52	35.34	29.31	—	3.45	6.02	2.56	6.91	7.53	—	—

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —

Based on the data provided, Certara Inc's days of inventory on hand (DOH) has shown fluctuations over the period from March 31, 2020, to June 30, 2024. The DOH metric provides insight into how efficiently the company manages its inventory.

From September 2020 to March 2021, the company managed to reduce its DOH significantly from 7.53 days to 2.56 days, indicating a more efficient turnover of inventory during that period. However, from June 2021 to September 2022, there was an increase in DOH, reaching as high as 36.52 days by September 30, 2022, reflecting a potential issue with inventory management or slowing sales.

The DOH decreased again from December 2022 to June 2023, indicating a more efficient handling of inventory. However, by September 30, 2023, the DOH surged back to 35.36 days, suggesting a potential buildup of inventory or sluggish sales once more.

For the period beyond 2023, there is missing data for DOH. It is essential for Certara Inc to monitor and manage its inventory levels effectively to ensure optimal working capital utilization and avoid potential obsolescence or carrying costs associated with excess inventory. Further analysis of the reasons behind the fluctuations in DOH is necessary to make informed decisions regarding inventory management in the future.