Certara Inc (CERT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,575,100 | 1,543,230 | 1,539,610 | 1,542,380 | 1,563,140 | 1,526,820 | 1,572,220 | 1,566,760 | 1,572,920 | 1,508,690 | 1,501,750 | 1,507,030 | 1,511,730 | 1,414,790 | 1,265,340 | 1,262,620 | 1,269,400 | 1,020,380 | 1,056,380 | — |
| Operating ROA | 0.38% | -0.26% | -3.86% | -2.81% | -2.33% | -1.37% | 2.72% | 2.32% | 2.23% | 1.80% | 1.03% | 0.93% | 0.90% | -3.07% | -2.78% | -2.12% | -1.92% | 3.25% | 3.19% | — |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $6,053K ÷ $1,575,100K
= 0.38%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate earnings from its operational assets. It is calculated by dividing operating income by average total assets.
Analyzing Certara Inc's Operating ROA over the period from March 31, 2020, to December 31, 2024, we observe fluctuating trends. Initially, the company's Operating ROA was not available, but it started positively at 3.19% in June 30, 2020, and continued to increase, reaching a peak of 2.72% in June 30, 2023. This indicates Certara Inc's effectiveness in utilizing its operational assets to generate operating income during these periods.
However, the Operating ROA experienced a downturn in the latter half of 2023 and 2024, dropping to negative figures, denoting a decline in profitability relative to its operational assets. The ratio improved slightly towards the end of 2024, standing at 0.38% as of December 31, 2024.
Overall, the fluctuating trend in Certara Inc's Operating ROA suggests a varying level of operational efficiency and profitability over the analyzed period. The company may need to focus on improving asset utilization and operational performance to enhance its overall financial performance.
Peer comparison
Dec 31, 2024