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	Sep 30, 2021	Jun 30, 2021	Mar 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	292,183	292,622	293,689
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	971,320	834,510	827,267
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.