Certara Inc (CERT)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -40,774 | -20,927 | 42,716 | 33,826 | 32,521 | 24,583 | 12,963 | 14,088 | 13,579 |
| Total assets | US$ in thousands | 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 |
| Operating ROA | -2.61% | -1.37% | 2.72% | 2.16% | 2.07% | 1.63% | 0.86% | 0.93% | 0.90% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-40,774K ÷ $1,563,140K
= -2.61%
To analyze Certara Inc's operating return on assets (operating ROA) over the referenced periods, it is observed that the operating ROA has fluctuated. In Q4 2023, the operating ROA stood at 0.40%, a decrease from the previous quarter's 1.71%. This decline may indicate a decrease in operating efficiency or profitability in the most recent quarter.
Looking further back, the operating ROA was at its peak in Q2 2023 at 2.72%, followed by a slight decrease in Q1 2023 to 2.16%. This suggests that Certara Inc was able to generate higher operating income relative to its assets in the first half of 2023 compared to the later quarters.
Comparing year-over-year data, there has been a noticeable improvement from Q4 2022's operating ROA of 2.07% to Q4 2023's 0.40%, indicating a better performance in the most recent quarter compared to the same period last year.
Overall, while the operating ROA has fluctuated throughout the periods presented, further analysis of the company's operations, asset utilization, and profitability drivers is warranted to better understand the reasons behind these fluctuations and their implications for Certara Inc's financial performance.
Peer comparison
Dec 31, 2023