Certara Inc (CERT)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.49 | 1.49 | 1.46 | 1.45 | 1.54 |
Certara Inc's solvency ratios indicate a strong financial position with consistently low debt levels. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company has no significant debt obligations relative to its assets, capital, or equity during this period.
Additionally, the financial leverage ratio has shown some minor fluctuations but has generally been stable, ranging from 1.45 to 1.54 over the same period. This indicates that Certara Inc relies modestly on debt financing to support its operations and investments, with a relatively low level of financial leverage.
Overall, the solvency ratios suggest that Certara Inc has a conservative debt structure and is well-positioned to meet its financial obligations in the long term. The consistent low debt levels and stable financial leverage ratio reflect a prudent approach to managing the company's financial health and risk exposure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -1.80 | -1.41 | 2.06 | 0.80 | -0.98 |
The interest coverage ratio for Certara Inc shows a fluctuating trend over the years, reflecting the company's ability to meet its interest obligations. In 2020, the ratio was negative at -0.98, indicating that the company's operating income was insufficient to cover its interest expenses. However, there was an improvement in 2021 with a ratio of 0.80, although still below 1, suggesting continued challenges in meeting interest payments.
By the end of 2022, Certara Inc's interest coverage ratio rose to 2.06, indicating a positive development and a healthier financial position with more income available to cover interest costs. However, in 2023 and 2024, the ratio turned negative again at -1.41 and -1.80 respectively, signaling a return to difficulty in managing interest payments relative to operating income.
Overall, the varying interest coverage ratios highlight Certara Inc's fluctuating financial performance and its ability to generate sufficient earnings to cover interest expenses, indicating the need for ongoing monitoring and potential improvements in financial management.