Certara Inc (CERT)

Debt-to-capital ratio

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
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
Debt-to-capital ratio 0.22 0.22 0.21 0.21 0.21 0.22 0.22 0.22 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 remained relatively stable over the past eight quarters, ranging between 0.21 and 0.22. This ratio indicates that Certara's level of debt in relation to its total capitalization has been consistently moderate. A ratio of 0.22 means that for every $1 of capital, Certara has $0.22 in debt. Overall, the company's debt levels have not shown significant fluctuations, suggesting a prudent approach to managing its capital structure. It is essential for investors and creditors to monitor this ratio to assess Certara's financial leverage and risk profile over time.