Certara Inc (CERT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 330,498 | 320,407 | 269,717 |
| Total assets | US$ in thousands | 1,563,140 | 1,572,920 | 1,511,730 |
| Total asset turnover | 0.21 | 0.20 | 0.18 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $330,498K ÷ $1,563,140K
= 0.21
Certara Inc's total asset turnover has shown a gradual increase over the past four years, moving from 0.19 in 2020 to 0.23 in 2023. The total asset turnover ratio measures the efficiency of the company in generating sales revenue from its total assets.
A total asset turnover ratio of 0.23 in 2023 implies that for every dollar of total assets, Certara Inc generated $0.23 in sales revenue. This indicates that the company has been able to utilize its assets more efficiently in generating revenue compared to the previous years, reflecting a positive trend in asset utilization.
The improvement in total asset turnover suggests that Certara Inc has become more effective in utilizing its assets to drive sales, which can result in higher profitability and return on investment. However, it is essential to analyze this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall performance and financial health.
Peer comparison
Dec 31, 2023