Certara Inc (CERT)

Operating profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 6,053 -4,038 -59,416 -43,355 -36,395 -20,927 42,716 36,347 35,042 27,104 15,484 14,088 13,579 -43,383 -35,127 -26,796 -24,420 33,151 33,682 25,148
Revenue (ttm) US$ in thousands 385,148 372,797 363,553 360,690 354,337 352,960 352,084 344,394 335,644 324,357 313,601 300,937 286,104 275,399 261,772 252,799 243,530 232,746 225,915 215,376
Operating profit margin 1.57% -1.08% -16.34% -12.02% -10.27% -5.93% 12.13% 10.55% 10.44% 8.36% 4.94% 4.68% 4.75% -15.75% -13.42% -10.60% -10.03% 14.24% 14.91% 11.68%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $6,053K ÷ $385,148K
= 1.57%

The operating profit margin of Certara Inc has displayed fluctuating trends over the past few years. From March 31, 2020, to June 30, 2022, the company's operating profit margin ranged from positive values around 4% to 14.91%, indicating a relatively healthy performance in terms of generating profits from its operations. However, there were periods like December 31, 2020, to September 30, 2021, when the operating profit margin turned negative, signaling potential challenges in controlling costs or generating sufficient revenues.

Subsequently, from December 31, 2021, to June 30, 2024, the operating profit margin remained mostly negative, with values as low as -16.34% on June 30, 2024. This extended period of negative margins suggests ongoing operational inefficiencies or financial difficulties faced by the company during this time.

The operating profit margin showed signs of recovery starting from September 30, 2024, reaching positive values of 1.57% by December 31, 2024. This improvement may indicate successful cost-cutting measures, revenue growth initiatives, or overall operational enhancements.

Overall, the analysis of Certara Inc's operating profit margin highlights the company's variable profitability performance, with periods of both strength and weakness. Management should continue to focus on optimizing operational efficiency and financial performance to sustain positive margins and achieve long-term profitability.