Certara Inc (CERT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 53.07% | 49.40% | 48.47% | 52.71% | 56.78% | 60.69% | 61.47% | 60.90% | 60.50% | 59.89% | 59.81% | 60.66% | 60.99% | 57.43% | 57.41% | 58.62% | 58.62% | 62.27% | 62.96% | 61.70% |
| Operating profit margin | 1.57% | -1.08% | -16.34% | -12.02% | -10.27% | -5.93% | 12.13% | 10.55% | 10.44% | 8.36% | 4.94% | 4.68% | 4.75% | -15.75% | -13.42% | -10.60% | -10.03% | 14.24% | 14.91% | 11.68% |
| Pretax margin | -4.46% | -8.52% | -23.02% | -17.48% | -15.56% | -11.06% | 6.55% | 5.08% | 5.59% | 4.59% | 0.95% | -0.40% | -1.18% | -22.93% | -22.22% | -19.88% | -20.61% | 2.67% | 2.52% | -1.93% |
| Net profit margin | -3.13% | -8.34% | -21.64% | -17.02% | -15.62% | -9.56% | 5.45% | 4.03% | 4.39% | -1.28% | -3.14% | -4.02% | -4.64% | -21.07% | -21.02% | -19.54% | -20.28% | -0.41% | 0.27% | -2.33% |
Certara Inc's profitability ratios have shown variations over the years. The gross profit margin has fluctuated between 48.47% and 62.96% during the period under review, reflecting changes in the company's cost of goods sold and pricing strategies.
The operating profit margin, which indicates the efficiency of the company's operations, has been volatile, ranging from -16.34% to 14.91%. This suggests that Certara has experienced challenges in managing its operating expenses and generating profits from its core business activities.
The pretax margin, a measure of the company's ability to generate profits before taxes, has also been inconsistent, with values fluctuating between -23.02% and 6.55%. This indicates fluctuations in Certara's earnings potential and its ability to cover its tax obligations.
The net profit margin, representing the company's bottom line profitability after all expenses have been deducted, has shown a similar trend of volatility, ranging from -21.64% to 5.45%. This suggests Certara has had difficulties in generating net income relative to its revenue.
Overall, Certara's profitability ratios indicate a lack of stability and consistency in its ability to generate profits and control costs effectively.
Return on investment
| 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 return on assets (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% | — |
| Return on assets (ROA) | -0.77% | -2.01% | -5.11% | -3.98% | -3.54% | -2.21% | 1.22% | 0.89% | 0.94% | -0.27% | -0.66% | -0.80% | -0.88% | -4.10% | -4.35% | -3.91% | -3.89% | -0.09% | 0.06% | — |
| Return on total capital | -0.56% | -1.86% | -5.79% | -3.76% | -3.08% | -1.15% | 4.50% | 3.87% | 3.79% | 3.99% | 2.70% | 2.53% | 2.40% | -4.54% | -4.37% | -3.37% | -3.03% | 6.63% | 6.81% | 5.10% |
| Return on equity (ROE) | -1.14% | -2.95% | -7.54% | -5.82% | -5.29% | -3.21% | 1.75% | 1.28% | 1.36% | -0.39% | -0.94% | -1.15% | -1.27% | -5.97% | -6.59% | -5.97% | -6.01% | -0.19% | 0.12% | -1.02% |
Certara Inc's profitability ratios show a mixed performance over the reporting periods.
- Operating ROA improved from negative values in the earlier periods to reach a modest positive level of around 2% to 3% in the most recent quarters, indicating the company's ability to generate operating profits from its assets.
- ROA also moved from negative figures to slightly positive numbers towards the end of the period, suggesting some improvement in the company's overall profitability in relation to its total assets.
- Return on total capital showed a similar trend, rebounding from negative levels to reach around 3% to 5% in the most recent periods, indicating the company's ability to generate returns from both debt and equity capital invested.
- ROE, on the other hand, remained mostly negative throughout the periods, although there was a slight improvement towards the end of the period, indicating that the company continues to struggle with generating profits for its shareholders relative to their equity investments.
Overall, while Certara Inc showed some improvements in generating returns from its assets and capital in the later periods, it still faces challenges in delivering profits to its equity investors based on the ROE figures.