Certara Inc (CERT)

Return on assets (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	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Net income (ttm)	US$ in thousands	-55,357	-33,727	19,174	13,879	14,731	-4,142	-9,840	-12,108	-13,266
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	1,414,790	1,265,340	1,262,620
ROA		-3.54%	-2.21%	1.22%	0.89%	0.94%	-0.27%	-0.66%	-0.80%	-0.88%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $-55,357K ÷ $1,563,140K
= -3.54%

To analyze Certara Inc's return on assets (ROA) trend, we can observe fluctuations over the past eight quarters. The ROA values have varied substantially during this period, ranging from a low of -3.54% in Q4 2023 to a high of 1.22% in Q2 2023.

The negative ROA values in recent quarters indicate that the company's net income generated from its assets has been insufficient to cover its total assets. This may suggest operational inefficiencies or financial challenges impacting Certara Inc's profitability.

The positive ROA values in some quarters, such as Q2 2023 and Q1 2023, indicate that the company was able to generate modest returns from its assets during those periods. However, it is important to note that these positive ROA values are relatively low compared to the negative values, indicating room for improvement in asset utilization efficiency.

Overall, the fluctuating ROA trend suggests that Certara Inc may be experiencing challenges in effectively managing and utilizing its assets to generate profits. Further analysis of the company's financial performance and operational strategies may be necessary to understand the underlying factors driving these fluctuations in ROA.