Certara Inc (CERT)

Working capital turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Revenue (ttm)	US$ in thousands	330,662	333,169	332,975	327,074	320,407	309,191	300,367	285,250	269,717
Total current assets	US$ in thousands	340,201	369,777	353,044	348,254	342,252	305,092	286,019	275,186	274,727	504,849	344,808	347,561
Total current liabilities	US$ in thousands	130,023	105,427	102,896	93,816	103,158	76,530	81,545	81,617	92,225	69,634	59,249	63,372
Working capital turnover		1.57	1.26	1.33	1.29	1.34	1.35	1.47	1.47	1.48

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $330,662K ÷ ($340,201K – $130,023K)
= 1.57

Certara Inc's working capital turnover has fluctuated over the past eight quarters, ranging from a low of 1.34 in Q3 2023 to a high of 1.69 in Q4 2023. This ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher working capital turnover ratio generally indicates that the company is effectively managing its working capital and efficiently converting it into sales.

The downward trend from Q2 2022 to Q3 2023 could suggest potential inefficiencies in the company's working capital management or a decrease in revenue generation relative to the amount of working capital employed. However, the ratio has started to increase in the latest quarter, which may indicate improved efficiency in managing working capital or an increase in revenue generation.

It is important for Certara Inc to closely monitor its working capital turnover ratio and analyze the reasons behind any significant fluctuations to ensure optimal utilization of its working capital resources and sustainable revenue growth.