Certara Inc (CERT)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	141,022	138,738	135,674	134,644	132,577	130,084	126,041	118,389	111,616
Payables	US$ in thousands	5,171	5,256	3,789	4,326	7,533	3,002	5,243	6,255	7,458	11,260	5,549	6,593
Payables turnover		27.27	26.40	35.81	31.12	17.60	43.33	24.04	18.93	14.97

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $141,022K ÷ $5,171K
= 27.27

The payables turnover ratio for Certara Inc has displayed fluctuations over the past eight quarters. The ratio indicates the number of times the company pays off its accounts payable during a specified period. Generally, a higher payables turnover ratio suggests that the company is efficiently managing its accounts payable by paying them off quickly.

In Q2 2022, Certara Inc had a relatively high payables turnover of 43.33, indicating efficient management of accounts payable during that period. This was followed by a notable decrease in Q3 2022 to 24.04 before decreasing further to 17.60 in Q4 2022. However, the ratio improved in Q1 2023 to 31.12 and further increased in Q2 2023 to 35.81, illustrating a more rapid turnover of accounts payable.

Although there was a slight decrease in Q3 2023 to 26.40, the ratio remains relatively high compared to previous quarters. Overall, the company's payables turnover has shown variability, with some quarters demonstrating efficient management of accounts payable and others showing room for improvement.