Certara Inc (CERT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -55,143 | 18,755 | -3,375 |
| Revenue | US$ in thousands | 330,498 | 320,407 | 269,717 |
| Pretax margin | -16.68% | 5.85% | -1.25% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $-55,143K ÷ $330,498K
= -16.68%
Certara Inc's pretax margin has fluctuated significantly over the past four years. The company experienced a negative pretax margin in three out of the four years, with the lowest margin recorded in 2020 at -20.61%. The margin improved in 2022 to 5.59%, indicating a shift towards profitability, but then declined again in 2023 to -15.56%. The negative pretax margins suggest that Certara Inc may be facing operational challenges or inefficiencies in managing its costs relative to its revenue generation. The company should focus on improving its cost management and revenue generation strategies to enhance its overall profitability in the future.
Peer comparison
Dec 31, 2023