Certara Inc (CERT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	330,498	320,407	269,717
Property, plant and equipment	US$ in thousands	2,670	2,400	2,935
Fixed asset turnover		123.78	133.50	91.90

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $330,498K ÷ $2,670K
= 123.78

Certara Inc's fixed asset turnover has shown a general increasing trend from 2020 to 2022, with a significant jump in 2021 followed by a slight decrease in 2022. The ratio further increased in 2023, reaching a high of 132.71. This indicates that Certara is generating more revenue per dollar of fixed assets invested. The company's efficiency in utilizing its fixed assets to generate sales has been improving over the years, reflecting potential operational efficiency and effective asset management strategies. However, it is essential to continue monitoring this ratio to ensure sustained operational efficiency and profitability.