Certara Inc (CERT)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -1,731 | -40,774 | 32,521 | 13,579 | -24,885 |
| Revenue | US$ in thousands | 385,148 | 354,337 | 335,644 | 286,104 | 243,530 |
| Operating profit margin | -0.45% | -11.51% | 9.69% | 4.75% | -10.22% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-1,731K ÷ $385,148K
= -0.45%
The operating profit margin of Certara Inc has shown fluctuations over the analyzed period. In December 2020, the company had a negative operating profit margin of -10.22%, indicating that for every dollar of revenue, the company incurred more in operating expenses than it generated in operating income. This improved significantly by December 2021 to 4.75%, suggesting more effective cost management and revenue generation strategies.
By December 2022, Certara Inc further increased its operating profit margin to 9.69%, showcasing enhanced operational efficiency and potentially a more favorable revenue mix. However, the company experienced a downturn in December 2023 with a negative operating profit margin of -11.51%, signaling challenges in controlling operating expenses relative to revenue.
The performance slightly recovered by December 2024 with a negative operating profit margin of -0.45%, indicating some improvements compared to the previous year but still falling short of achieving positive profitability. Overall, continuous monitoring of operating expenses and revenue streams will be crucial for Certara Inc to sustainably improve its operating profit margin and overall financial health.
Peer comparison
Dec 31, 2024