Certara Inc (CERT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -32,227 | -16,543 | 44,877 | 37,498 | 36,528 | 30,489 | 16,671 | 14,929 | 13,462 |
| Long-term debt | US$ in thousands | 288,217 | 288,661 | 289,104 | 289,546 | 289,988 | 290,428 | 290,868 | 291,308 | 291,746 |
| 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 |
| Return on total capital | -2.41% | -1.23% | 3.24% | 2.73% | 2.67% | 2.27% | 1.24% | 1.11% | 1.01% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-32,227K ÷ ($288,217K + $1,046,840K)
= -2.41%
Certara Inc's return on total capital has displayed varying levels over the past eight quarters. The trend indicates some fluctuations in the company's ability to generate profits relative to its total invested capital. In the most recent quarter, Q4 2023, the return on total capital was notably lower at 0.46% compared to the previous quarter, Q3 2023, where it stood at 1.94%. Despite this decline, the return on total capital in Q4 2023 remains above the levels reported in Q2 and Q1 2023, suggesting a degree of resilience. Over the broader timeframe, the data indicates an overall positive trend in Certara Inc's return on total capital, with Q2 and Q3 2022 showing the highest levels of 3.07% and 1.82%, respectively. This analysis underscores the importance of consistently monitoring and evaluating the company's performance in efficiently utilizing its capital resources to drive profitability.
Peer comparison
Dec 31, 2023