Certara Inc (CERT)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company is managing its assets and operations. Let's analyze Certara Inc's activity ratios based on the provided data:

1. Inventory Turnover: Unfortunately, no data is available for inventory turnover, so we cannot assess how quickly Certara is selling its inventory.

2. Receivables Turnover: Certara's receivables turnover has been relatively stable over the quarters, ranging from 3.87 to 4.50. This ratio indicates that the company is able to collect its accounts receivables multiple times a year, suggesting an efficient management of credit sales and collection processes.

3. Payables Turnover: Certara's payables turnover has varied significantly, ranging from 17.60 to 43.33. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could imply strong negotiation power or favorable credit terms.

4. Working Capital Turnover: The working capital turnover shows how effectively Certara is utilizing its working capital to generate revenue. The ratios have been relatively stable, fluctuating between 1.34 and 1.69. A higher working capital turnover suggests more efficient utilization of resources.

Overall, Certara Inc's activity ratios demonstrate efficient management of receivables and working capital, but the lack of data for inventory turnover limits a comprehensive assessment of the company's overall operational efficiency. Further analysis combining these ratios with profitability and liquidity indicators would provide a more holistic view of Certara's financial performance.

---

Average number of days

Days of inventory on hand (DOH) for Certara Inc is not provided in the data table. This ratio typically measures the number of days it takes for a company to sell its average inventory. A lower DOH indicates that the company is selling its inventory more quickly.

Days of sales outstanding (DSO) for Certara Inc has been fluctuating over the quarters, ranging from 81.04 days to 92.00 days. DSO measures how long it takes for a company to collect its accounts receivable. A lower DSO is generally favorable as it signifies faster collection of receivables.

Number of days of payables for Certara Inc has shown variations, with values ranging from 8.42 days to 20.74 days. This ratio measures how long it takes for a company to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to pay its suppliers.

Overall, Certara Inc may need to focus on managing its inventory effectively, improving its accounts receivable collection process, and optimizing its payment terms with suppliers to enhance its working capital management and operational efficiency.

---

Long-term

The fixed asset turnover ratio for Certara Inc has been relatively stable over the past eight quarters, ranging from 102.81 to 166.02. This ratio indicates that the company generates a high level of revenue compared to its investment in fixed assets, reflecting operational efficiency and effective utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also remained consistent at around 0.20 to 0.23 over the same period. This ratio signifies how efficiently the company utilizes all its assets to generate revenue. A total asset turnover ratio of less than 1 indicates that Certara Inc generates less revenue relative to its total assets, which suggests the company may have a significant investment in non-operating assets or excess assets that are not fully utilized to generate sales.

In conclusion, while Certara Inc demonstrates strong efficiency in generating revenue from its fixed assets, the company may benefit from optimizing the utilization of its total assets to improve overall operational efficiency and profitability.