Certara Inc (CERT)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Long-term debt	US$ in thousands	288,217	289,988	291,746
Total stockholders’ equity	US$ in thousands	1,046,840	1,079,660	1,041,850
Debt-to-capital ratio		0.22	0.21	0.22

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $288,217K ÷ ($288,217K + $1,046,840K)
= 0.22

The debt-to-capital ratio of Certara Inc has shown stability over the past four years, ranging from 0.21 to 0.27. This ratio indicates the proportion of the company's capital structure financed by debt. A decreasing trend from 2020 to 2022 suggests a reduction in reliance on debt for funding operations and investments. However, the ratio slightly increased in 2023 to 0.22, which still indicates a relatively conservative level of debt compared to the total capital structure. Certara Inc's consistent management of its debt-to-capital ratio demonstrates a prudent approach to financial risk and a balanced mix of debt and equity in its capitalization.