Certara Inc (CERT)

Short-term

Turnover ratios

The activity ratios of Certara Inc provide insights into the efficiency of the company's operations.

1. Inventory Turnover:
- Certara's inventory turnover has fluctuated over the years, ranging from a low of 9.99 to a high of 142.70. A higher inventory turnover ratio indicates that Certara is selling its inventory quickly, which is generally positive as it implies efficient management of inventory levels.

2. Receivables Turnover:
- The data shows that there is no information available for Certara's receivables turnover ratio. This ratio typically measures how efficiently a company is collecting on its credit sales. It would be beneficial to have this data to assess Certara's effectiveness in converting credit sales into cash.

3. Payables Turnover:
- Like receivables turnover, there is no information available for Certara's payables turnover ratio. This ratio helps in understanding how long it takes for Certara to pay its suppliers, and a higher ratio is generally preferred as it indicates a shorter payment period.

4. Working Capital Turnover:
- Certara's working capital turnover has shown a decreasing trend over the years, indicating a decline in the efficiency of utilizing working capital to generate sales. A decreasing trend in this ratio may suggest potential issues in managing working capital effectively.

In conclusion, while Certara's inventory turnover ratios indicate efficient management of inventory levels, the lack of data on receivables and payables turnover ratios restricts a comprehensive analysis of the company's efficiency in managing receivables and payables. The decreasing trend in working capital turnover also raises concerns about the company's ability to generate sales efficiently using its working capital. Further analysis and additional financial data would provide a more thorough assessment of Certara Inc's operational efficiency.

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Average number of days

Based on the provided data on Certara Inc's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- Certara Inc's DOH fluctuated over the periods reported, ranging from as low as 2.56 days to as high as 36.52 days.
- A lower DOH indicates efficient inventory management, while a higher DOH may suggest excess inventory or slower sales turnover.
- Notably, there was a significant increase in DOH from March 31, 2022, to June 30, 2022, signaling a potential change in inventory management practices or sales patterns.

2. Days of Sales Outstanding (DSO):
- The DSO data for Certara Inc is not provided in the dataset, which limits our ability to assess the company's effectiveness in collecting accounts receivable.
- DSO is a critical metric in evaluating a company's credit policies and the efficiency of its accounts receivable management.

3. Number of Days of Payables:
- The data for the number of days of payables is not available, preventing an analysis of how long Certara Inc takes to pay its creditors.
- Analyzing payables turnover is crucial for understanding a company's relationships with suppliers and its cash flow management.

In conclusion, while we can draw insights from Certara Inc's inventory management based on the DOH data, the absence of DSO and payables data limits a comprehensive assessment of the company's overall efficiency in managing its working capital and relationships with customers and suppliers.

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Long-term

The fixed asset turnover ratio for Certara Inc has shown significant fluctuations over the years, increasing from 62.90 in December 2020 to 159.60 in June 2023. This indicates that the company has been able to generate more revenue relative to its investment in fixed assets during this period.

On the other hand, the total asset turnover ratio has remained relatively stable, ranging from 0.19 to 0.24 between December 2020 and December 2024. This suggests that Certara Inc's ability to generate revenue from its total assets has not seen significant changes during this period.

Overall, the analysis of Certara Inc's long-term activity ratios shows an improvement in the efficiency of utilizing fixed assets to generate revenue, while the overall efficiency in generating revenue from total assets has remained steady over the years.