Certara Inc (CERT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.35% | 58.36% | 59.25% | 58.83% | 58.62% | 57.93% | 58.04% | 58.50% | 58.62% |
| Operating profit margin | -12.33% | -6.28% | 12.83% | 10.34% | 10.15% | 7.95% | 4.32% | 4.94% | 5.03% |
| Pretax margin | -16.68% | -11.72% | 6.93% | 5.34% | 5.85% | 4.81% | 0.99% | -0.42% | -1.25% |
| Net profit margin | -16.74% | -10.12% | 5.76% | 4.24% | 4.60% | -1.34% | -3.28% | -4.24% | -4.92% |
Certara Inc's gross profit margin has been fairly stable around the 60% range over the past eight quarters, indicating that the company has consistently generated profits after accounting for the cost of goods sold.
However, there is some fluctuation in the operating profit margin, which indicates Certara's ability to control its operating expenses. The company's operating profit margin varied significantly, from a low of 1.75% in Q4 2023 to a high of 12.13% in Q2 2023. This suggests that Certara may have experienced fluctuations in its operating efficiency during this period.
The pretax margin also shows volatility, with negative margins in Q4 2023 and Q3 2023, indicating that Certara incurred losses before accounting for taxes during these quarters. It is important for the company to closely monitor its expenses and revenue generation to improve its pre-tax profitability.
Similarly, the net profit margin displays variability, with negative margins in Q4 2023, Q3 2023, and Q2 2022. It is essential for Certara to focus on improving its net profit margin by enhancing operational efficiency and increasing revenues while managing costs effectively.
Overall, Certara Inc's profitability ratios show a mixed performance over the past eight quarters, suggesting the need for the company to address areas of weakness and capitalize on strengths to enhance its overall profitability in the future.
Return on investment
| 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 return on assets (Operating ROA) | -2.61% | -1.37% | 2.72% | 2.16% | 2.07% | 1.63% | 0.86% | 0.93% | 0.90% |
| Return on assets (ROA) | -3.54% | -2.21% | 1.22% | 0.89% | 0.94% | -0.27% | -0.66% | -0.80% | -0.88% |
| Return on total capital | -2.41% | -1.23% | 3.24% | 2.73% | 2.67% | 2.27% | 1.24% | 1.11% | 1.01% |
| Return on equity (ROE) | -5.29% | -3.21% | 1.75% | 1.28% | 1.36% | -0.39% | -0.94% | -1.15% | -1.27% |
Certara Inc's profitability ratios have shown some fluctuation over the past eight quarters based on the data provided.
Operating return on assets (Operating ROA) has ranged from 0.40% to 2.72% during this period, indicating the company's ability to generate operating income relative to its total assets. The highest Operating ROA was in Q2 2023, suggesting improved operational efficiency.
Return on assets (ROA) has been negative in most quarters, indicating a net loss relative to the total assets. However, there were positive ROA values in Q2 and Q3 2023, indicating some profitability in those periods.
Return on total capital showed a similar trend to Operating ROA, ranging from 0.46% to 3.07%. The highest return was in Q3 2023, implying that Certara was efficient in generating returns from its total capital investment.
Return on equity (ROE) has also varied, with negative values in most quarters. The highest ROE was in Q2 2023, suggesting better profitability for shareholders compared to the other quarters.
Overall, the profitability ratios suggest that Certara Inc has experienced fluctuations in profitability over the past two years, with some quarters showing improved performance in terms of generating returns from assets, total capital, and equity. However, the company also had periods of negative profitability, indicating potential challenges in managing costs and maximizing returns for investors.