Certara Inc (CERT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,575,100 | 1,563,140 | 1,572,920 | 1,511,730 | 1,269,400 |
| Operating ROA | -0.11% | -2.61% | 2.07% | 0.90% | -1.96% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-1,731K ÷ $1,575,100K
= -0.11%
Based on the provided data, Certara Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years.
- As of December 31, 2020, the operating ROA was at a negative 1.96%, indicating that the company was not generating a positive return from its operations based on its assets.
- By December 31, 2021, the operating ROA improved to a positive 0.90%, suggesting that the company's operating efficiency and asset utilization had increased.
- The trend continued in December 31, 2022, with the operating ROA rising to 2.07%, reflecting further improvement in Certara Inc's ability to generate return from its assets.
- However, by December 31, 2023, the operating ROA declined to a negative 2.61%, signaling a potential decrease in operating efficiency and profitability.
- The most recent data point as of December 31, 2024, shows a slight improvement with the operating ROA at a negative 0.11%.
In conclusion, the fluctuating trend in Certara Inc's operating ROA over the five-year period indicates varying levels of operational efficiency and asset utilization. It is essential for the company to closely monitor and manage its operational performance to ensure sustainable profitability and effective use of its assets.
Peer comparison
Dec 31, 2024