Certara Inc (CERT)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -17,184 | -55,143 | 18,755 | -3,375 | -50,181 |
| Revenue | US$ in thousands | 385,148 | 354,337 | 335,644 | 286,104 | 243,530 |
| Pretax margin | -4.46% | -15.56% | 5.59% | -1.18% | -20.61% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-17,184K ÷ $385,148K
= -4.46%
Certara Inc's pretax margin has shown variability over the past five years. In December 31, 2020, the pretax margin was -20.61%, indicating that the company incurred a loss before taxes equivalent to approximately 20.61% of its total revenues. However, there was a significant improvement in the pretax margin by December 31, 2022, where it reached 5.59%, signaling a turnaround towards profitability.
Nevertheless, Certara Inc experienced fluctuations in its pretax margin in subsequent years, with December 31, 2021, showing a marginal improvement at -1.18%, followed by a decline to -15.56% by December 31, 2023, indicating a return to losses. By the end of December 31, 2024, the pretax margin improved slightly to -4.46%, although it still remained negative.
The trend in Certara Inc's pretax margin suggests that the company has been facing challenges in consistently generating profits before accounting for taxes. Management should focus on cost control measures and revenue growth strategies to stabilize and improve the pretax margin in the future.
Peer comparison
Dec 31, 2024