Certara Inc (CERT)

Return on equity (ROE)

		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
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 stockholders’ equity	US$ in thousands	1,046,840	1,051,750	1,097,170	1,085,060	1,079,660	1,054,400	1,048,380	1,048,400	1,041,850
ROE		-5.29%	-3.21%	1.75%	1.28%	1.36%	-0.39%	-0.94%	-1.15%	-1.27%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-55,357K ÷ $1,046,840K
= -5.29%

Certara Inc's return on equity (ROE) has demonstrated fluctuating performance over the past eight quarters, ranging from negative figures to positive ones. In Q4 2023 and Q3 2023, the company reported negative ROE figures of -5.29% and -3.21% respectively, indicating that the company's net income for those periods was insufficient to generate a positive return for shareholders based on their equity investments. However, Certara Inc managed to improve its ROE in Q2 2023 and Q1 2023 to 1.75% and 1.28% respectively, signaling a more favorable performance in effectively utilizing shareholder equity to generate profits.

The company's ROE had been gradually improving throughout the previous year, with Q4 2022 reporting an ROE of 1.36%, which indicates that Certara Inc was able to generate a modest return for shareholders on their equity investment in that quarter. Nonetheless, there were some periods of negative ROE in 2022, with the lowest point being in Q2 2022 with an ROE of -0.94%. Overall, the trend in ROE indicates that Certara Inc has been working to enhance its profitability and efficiency in utilizing shareholder equity to generate returns, albeit with varying degrees of success in different quarters. It will be essential for the company to sustain its positive ROE trajectory in the future to continue creating value for its shareholders.