Certara Inc (CERT)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	330,498	320,407	269,717
Total current assets	US$ in thousands	340,201	342,252	274,727
Total current liabilities	US$ in thousands	130,023	103,158	92,225
Working capital turnover		1.57	1.34	1.48

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $330,498K ÷ ($340,201K – $130,023K)
= 1.57

Certara Inc's working capital turnover has been improving over the past four years, indicating the company's ability to efficiently manage its working capital to generate sales revenue. The trend shows an increasing trend from 0.90 in 2020 to 1.69 in 2023. This implies that Certara Inc is using its working capital more effectively to support its operations and generate sales. A higher working capital turnover ratio generally suggests that the company is efficiently using its current assets and liabilities to drive sales, which is a positive sign for the company's financial health and operational efficiency. By keeping a close eye on its working capital turnover ratio, Certara Inc can continue to optimize its working capital management strategy for sustainable growth.