Certara Inc (CERT)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Operating income	US$ in thousands	-40,774	32,521	13,579
Total assets	US$ in thousands	1,563,140	1,572,920	1,511,730
Operating ROA		-2.61%	2.07%	0.90%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-40,774K ÷ $1,563,140K
= -2.61%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. It indicates how efficiently a company is using its assets to generate profits before interest and taxes.

Analyzing Certara Inc's Operating ROA over the past four years reveals some fluctuations in the company's operational efficiency. In 2023, Certara Inc achieved an Operating ROA of 0.40%, representing a decrease from the previous year's 2.07%. This decline suggests a relative decrease in the company's operating income generated from its assets compared to the prior period.

However, in 2022, Certara Inc notably improved its operational efficiency with an Operating ROA of 2.07%, demonstrating a substantial increase from 0.90% in 2021. This improvement indicates that the company became more effective in generating operating income relative to its assets during that period.

Notably, in 2020, Certara Inc recorded a negative Operating ROA of -1.92%, indicating that the company faced challenges in efficiently utilizing its assets to generate operating income and may have incurred operating losses. This negative figure suggests that Certara Inc's assets were not effectively contributing to the company's operating income during that year.

Overall, Certara Inc's Operating ROA has shown fluctuations over the past four years, with significant improvements in some years and challenges in others. It is important for investors and stakeholders to monitor this ratio to assess the company's operational efficiency and ability to generate profits from its assets effectively.