Certara Inc (CERT)
Debt-to-equity 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-equity ratio | 0.28 | 0.27 | 0.28 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $288,217K ÷ $1,046,840K
= 0.28
The debt-to-equity ratio of Certara Inc has remained relatively stable over the past four years, ranging from 0.27 to 0.36. The ratio indicates that the company has maintained a conservative level of debt compared to its equity. A decreasing trend from 0.36 in 2020 to 0.28 in 2023 suggests that Certara Inc has been gradually reducing its reliance on debt financing in relation to its equity base. This may imply improved financial stability and a lower risk of financial distress. Overall, the consistent and moderate debt-to-equity ratio reflects a prudent capital structure management by Certara Inc.
Peer comparison
Dec 31, 2023