Certara Inc (CERT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.88% | 60.20% | 60.50% | 60.99% | 58.62% |
| Operating profit margin | -0.45% | -11.51% | 9.69% | 4.75% | -10.22% |
| Pretax margin | -4.46% | -15.56% | 5.59% | -1.18% | -20.61% |
| Net profit margin | -3.13% | -15.62% | 4.39% | -4.64% | -20.28% |
Certara Inc has shown improvement in its gross profit margin over the past years, with a steady increase from 58.62% in 2020 to 60.99% in 2021, and maintaining relatively high levels in subsequent years. This indicates the company's ability to efficiently control its production costs and generate profits from its core operations.
The operating profit margin fluctuated during the period under review, starting at -10.22% in 2020, moving to positive territory at 4.75% in 2021 and reaching its peak at 9.69% in 2022. However, the margin declined in 2023 and 2024, showcasing some volatility in the company's operational efficiency.
The pretax margin also experienced fluctuations, starting at -20.61% in 2020, then improving to -1.18% in 2021, and further increasing to 5.59% in 2022. However, the margin turned negative again in 2023 and 2024, indicating that the company's profitability before taxes was impacted by various factors in those years.
The net profit margin, which reflects the company's bottom line profitability, exhibited a similar pattern of fluctuation. Starting at -20.28% in 2020, it improved to -4.64% in 2021 and further increased to 4.39% in 2022. However, the margin turned negative in 2023 and 2024, indicating a decline in the company's ability to translate its revenues into profits after accounting for all expenses.
Overall, while Certara Inc has shown improvements in its gross profit margin over the years, its operating, pretax, and net profit margins have been more volatile, indicating challenges in maintaining consistent profitability levels across the board. Further analysis of the company's cost structure and operational efficiency may be warranted to address these fluctuations and improve overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.11% | -2.61% | 2.07% | 0.90% | -1.96% |
| Return on assets (ROA) | -0.77% | -3.54% | 0.94% | -0.88% | -3.89% |
| Return on total capital | -3.66% | -3.08% | 3.38% | 1.29% | -3.03% |
| Return on equity (ROE) | -1.14% | -5.29% | 1.36% | -1.27% | -6.01% |
Certara Inc's profitability ratios show a mixed performance over the years.
- Operating Return on Assets (Operating ROA) has improved from a negative 1.96% in 2020 to 2.07% in 2022, indicating a better utilization of assets to generate operating profits. However, the ratio declined to negative 2.61% in 2023 and then recovered slightly to a negative 0.11% in 2024.
- Return on Assets (ROA) also improved from negative 3.89% in 2020 to 0.94% in 2022, suggesting better profitability relative to the total assets. Nevertheless, the ratio decreased to negative 3.54% in 2023 and recovered slightly to negative 0.77% in 2024.
- Return on Total Capital increased from negative 3.03% in 2020 to 3.38% in 2022, indicating more effective use of total capital to generate returns. However, the ratio declined to negative 3.08% in 2023 and further to negative 3.66% in 2024.
- Return on Equity (ROE) saw improvement from negative 6.01% in 2020 to 1.36% in 2022, suggesting better profitability for the shareholders. Nonetheless, the ratio dropped to negative 5.29% in 2023 and then recovered slightly to negative 1.14% in 2024.
Overall, the profitability ratios of Certara Inc show fluctuations over the years, with improvements in certain years followed by declines. It is important for the company to sustain and enhance profitability to ensure long-term financial health and attractiveness to investors.