Certara Inc (CERT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | -55,357 | 14,731 | -13,266 |
| Total stockholders’ equity | US$ in thousands | 1,046,840 | 1,079,660 | 1,041,850 |
| ROE | -5.29% | 1.36% | -1.27% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-55,357K ÷ $1,046,840K
= -5.29%
The return on equity (ROE) for Certara Inc has fluctuated over the past four years. In 2023, the ROE was at -5.29%, indicating a negative return on the equity of the company for that year. This was a significant decline from the previous year, where the ROE was 1.36%, suggesting a decreased profitability relative to shareholder's equity.
In 2021, the ROE was at -1.27%, showing another year of negative returns for shareholders. The lowest ROE was recorded in 2020 at -6.01%, indicating a substantial decline in profitability compared to the previous year.
Overall, the trend in ROE for Certara Inc indicates fluctuations and inconsistency in the company's ability to generate returns on equity for its shareholders. The negative ROE figures suggest that the company's profitability relative to shareholder's equity has been a challenge in recent years, potentially impacting investor confidence and the company's growth prospects.
Peer comparison
Dec 31, 2023