Certara Inc (CERT)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 385,148 | 354,337 | 335,644 | 286,104 | 243,530 |
| Total current assets | US$ in thousands | 310,852 | 340,201 | 342,252 | 274,727 | 346,584 |
| Total current liabilities | US$ in thousands | 146,088 | 130,023 | 103,158 | 92,225 | 75,345 |
| Working capital turnover | 2.34 | 1.69 | 1.40 | 1.57 | 0.90 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $385,148K ÷ ($310,852K – $146,088K)
= 2.34
The working capital turnover for Certara Inc has shown a positive trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio increased from 0.90 in December 31, 2020, to 2.34 in December 31, 2024. This signifies that Certara Inc is generating more revenue relative to its working capital, which can be a positive sign of effective operations and strong liquidity management. The company has been able to cycle its working capital more frequently to support its revenue generation activities, which is crucial for sustainable growth and profitability. However, it is important to continue monitoring this ratio to ensure that the improvement in working capital turnover is sustainable and aligned with the company's growth objectives.
Peer comparison
Dec 31, 2024