Certara Inc (CERT)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -12,051 | -55,357 | 14,731 | -13,266 | -49,397 |
| Total stockholders’ equity | US$ in thousands | 1,058,660 | 1,046,840 | 1,079,660 | 1,041,850 | 822,132 |
| ROE | -1.14% | -5.29% | 1.36% | -1.27% | -6.01% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-12,051K ÷ $1,058,660K
= -1.14%
Based on the provided data, Certara Inc's return on equity (ROE) has varied over the years. In 2020, the ROE was -6.01%, indicating that the company had a negative return on equity, implying that it didn't generate significant profits relative to its shareholders' equity.
However, there was a slight improvement in 2021, with the ROE improving to -1.27%. While still negative, this suggests a minor recovery in the company's ability to generate profits from shareholders' equity.
The trend continued in 2022, with the ROE turning positive at 1.36%. This signifies that Certara Inc was able to generate a modest return on equity for its shareholders that year.
Unfortunately, in 2023, the ROE declined again to -5.29%, indicating a sharp decrease in the company's ability to generate profits from shareholders' equity.
In 2024, the ROE improved slightly to -1.14%, still negative but showing a slight uptick compared to the previous year.
Overall, Certara Inc's ROE has been volatile, with fluctuations between negative and slightly positive figures. It is important for the company to work on consistent profitability to ensure sustainable returns for its shareholders in the future.
Peer comparison
Dec 31, 2024